Sales at Drugstore.com rose by 20 percent during the first quarter as the Bellevue online drugstore posted strong sales of over-the-counter medicines and products at its Beauty.com unit. It also announced a deal to sell its pharmacy assets to BioScrip for $10.9 million, with BioScrip providing pharmacy services to Drugstore.com through a strategic partnership.

"We strongly believe we should offer our customers the convenience of a pharmacy, and in BioScrip we believe that we've found the right company to provide, as well as expand, services to our customers," said drugstore.com CEO Dawn Lepore in a release. "While drugstore.com started more than a decade ago as an online pharmacy, over the past few years, the company has evolved and experienced accelerated growth in health, beauty, and vision products. We now believe we're at a point where we need to focus on our strategic growth markets."

The company finished the first quarter with revenue of $118.3 million and a net loss of $2.6 million. That compared to net income of $854,000 for the same period last year. Part of the quarter's loss was driven by integration expenses tied to the company's purchase of Salu Inc.

"Overall, we remain on track to hit 2010 goals of OTC revenue growth of 20% to 35%, doubling our prestige beauty business and delivering bottom line profitability," said Lepore.

Looking ahead, the company said it expects sales in the range of $113 million to $117 million for the second quarter and net income of $3.5 million to $4.5 million.

Shares of Drugstore.com fell more than two percent in after hours trading to $3.60.