MyMedicalRecords.com has seemingly achieved the impossible in a frozen IPO market that has been especially cruel to health care startups: It will go public through a merger with large pharmaceutical firm Favrille, extending its reach and amplifying its brand. The Los Angeles company provides secure online access to medical records for patients, physicians, employers and insurance companies.
Under the deal, MMR will become a subsidiary of Favrille, with existing shareholders getting 64 percent of the company and Favrille shareholders 29 percent; the remaining 7 percent will be split among creditors to settle outstanding debts. Favrille also granted MMR $500,000 in bridge funding to keep operations going until the agreement is finalized at the end of January.
Previously, MMR had raised $10 million from undisclosed investors and planned to bring in an additional $20 million through institutional fundraising.