Profile: drugstore.com, inc. (DSCM.O)

drugstore.com, inc., incorporated in April 1998, is an online provider of health, beauty, vision, and pharmacy products. The Company offer health, beauty, sexual well-being, household and other non-prescription products and prescription medications, through its Website at www.drugstore.com. The Company also offer prestige beauty products through the Website located at www.beauty.com; contact lenses through the wholly owned subsidiary Vision Direct, Inc., through Websites located at www.visiondirect.com, www.lensmart.com, www.lensworld.com, and www.lensquest.com (which are also accessible through the drugstore.com Website); and customized nutritional supplement programs through the wholly owned subsidiary, Custom Nutrition Services, Inc. (CNS). The Company operates in three business segments: over the counter (OTC), vision and mail-order pharmacy.

Over the counter

The Company stock approximately 36,000 non-prescription health, beauty, personal care, household, and other products. It also offers approximately 6,000 products, through the arrangements with drop-ship vendors. The Company also offer OTC products in a range of categories, including personal care, make up and accessories, hair care, skin care, medicine cabinet, vitamins, home medical, gifts, oral care, diet and fitness, household and pets, baby and mom, food and gourmet, green and natural, and toys and games. In addition, the Company, through its subsidiary CNS also provide personalized nutrition services to consumers in the form of an online assessment of an individual’s specific nutritional supplement needs, and deliver the personalized vitamins, minerals, herbs, and supplements in pharmaceutical-grade, daily dose packages.

Vision

The Company, through its subsidiary Vision Direct, offered an assortment of contact lenses, in addition to reading glasses, contact lens cases, and other contact lens supplies. The contact lenses are subject to the United States Fairness to Contact Lens Consumers Act (FTCLCA), and the related regulations of the Federal Trade Commission (FTC).

Mail-Order Pharmacy

The mail-order pharmacy segment includes prescription drugs and supplies, other than prescription contact lenses, sold online through the pharmacy section of the drugstore.com Web store or over the telephone and delivered to customers through the mail-order facility. The Company serve both cash-paying pharmacy customers and customers with insurance coverage. In addition, it acts as an outsourced mail-order pharmacy service provider for pharmacy benefit managers (PBMs).