Ø Established
Healthcare Provider Moving to Acquire Telehealth Business.
Ø Multiple
Subsidiaries Generating Strong and Growing Revenues.
Ø Q2
Consolidated Net Revenues for Last 6 Months Totaled $18.3 Million.
Ø Strong
Balance Sheet with Over $2 Million in Cash.
Ø Significant
Business Expansions and Rapid Covid Testing Services.
Progressive
Care Inc. (OTCQB: RXMD), through its subsidiaries, is a personalized
healthcare services and technology company which provides prescription
pharmaceutical services including Covid-testing, risk management and data
analytics to healthcare organizations and providers.
RXMD seeks to define a new level of
service and healthcare that is driven by the needs of patients and families. As
the healthcare system changes and adjusts, gaps form in the delivery of care
leaving patients, providers, and even payors behind to deal with negative
health outcomes. RXMD works to eliminate obstacles and inadequacies in
care by delivering innovative, patient-centric services that improve the health
and well-being of our communities.
On September
16th RXMD provided an update on the hiring process for its
new CEO and its pending 100% acquisition of MyApps Corp. (“MyApps”)
(myapps.solutions), a leading developer of healthcare software, which includes
the emerging telehealth service app, CallingDr™ (callingdr.com). RXMD
will be immediately engaging MyApps to accelerate development of software
platforms for ClearMetRX, the company’s wholly-owned data management
subsidiary, and its divisions. MyApps is a commercial-stage software developer
on pace to record over $1 million in revenues in 2020.
RXMD is also now in advanced discussions
regarding the hiring of a new Chief Executive Officer with the experience and
skill set to take the company to the next level with the ultimate goals of
uplisting to a major exchange and reaching over $100 million in sales. For 2020 RXMD is already on track to
reach the $40 million sales level.
> MyApps Acquisition Underway with Major Health Market Potential
MyApps has
full control over CallingDr, a complete telehealth platform providing multiple
levels of service with a suite of products currently in use in single-physician
clinics, multi-physician clinics, emergency room centers, nursing homes, and
home health setups across multiple US states. While working towards the
completion of the acquisition, RXMD will be taking necessary regulatory
steps to participate in the prescription drug business in all 50 US states (RXMD
is currently licensed in 14 US states) on a mail-order basis. In-house research
suggests that nearly one-third of all prescriptions in the US are filled on a mail-order
basis, suggesting that this transition will increase RXMD total
addressable market by over $200 billion (based on company data along with data
from the US Department of Health and Human Services). MyApps serviced 3,448 new patients over the
six months between March 1 and September 1, 2020, with some having multiple
sessions, amounting to over 10,500 remote healthcare sessions in the past six
months. Along with CallingDr™, MyApps also has a portal named FindingDr™, which
helps providers connect with new patients. Following the closing of the
acquisition, RXMD will be able to offer healthcare providers across the
country and in its network of business with access to this portal to connect
them with new patients.
GoodRX (NASDAQ GDRX) in the pharmacy services space, recently filed for an IPO
with a pre-IPO valuation of $2.8 billion on under $390 million in 2019 sales,
trading at nearly 7 times trailing sales. The 2019 acquisition of ‘HeyDoctor’
appears to be an important part of its growth plan and future valuation.
Pairing pharmacy services with a powerful telehealth platform unlocked the
prospect of fresh growth potential relative to the space, especially as federal
and state regulations on telemedicine were stripped from the equation after the
onset of the COVID-19 pandemic health crisis in March.
The RXMD
CallingDr service is actually a superior telemedicine platform. RXMD management believes it has an
even more potent mix of assets that present a similar formula for powering
shareholder value over the coming decade. Yet, RXMD shares trade under
0.5 times 2019 sales. With enormous year-over-year growth, a coming $200
billion expansion in total addressable market, and the acquisition and
integration of an active cutting-edge telehealth platform with a national
customer footprint already established, and with the goal of uplisting to a
major exchange, RXMD continues to aggressively strive toward leadership
as an innovative technology and personalized healthcare company.
According to
a recent report by Fortune Business Insights, the global telemedicine market is
projected to grow from $34.28 billion in 2018 to $185.66 billion by 2026,
exhibiting a CAGR of 23.5% over that period. Another report from Global Market
Insights notes that nearly half of this overall market size and growth is
attributable to activity within the US market alone. According to multiple
market research publications, the mail-order prescription market is growing
nearly twice as fast as any other segment of the prescription drug market.
Ø Q2
2020 Financials: Sales Up 32%, Over $2M in Cash on Hand
On August 17th
RXMD announced operational performance data for the three months and six
months ended June 30, 2020. Highlights included the following milestones:
- Consolidated net revenues for the
three months ended June 30 totaled $9.2 million (for the six months ended
June 30, $18.3 million), representing year-over-year growth of 32% (and
50% for the six-month period) compared to comparable periods in 2019
- Prescriptions filled in Q2 topped
126,000 (and 258,000 in the six-month period), representing year-over-year
growth of 23% in Q2 2020 (and 38% for the six-month period) compared to
comparable periods in 2019
- Income from services related to
340B Covered Entities increased over $420,000 compared to the previous
six-month period, a 191% increase (314% increase in Q2 2020,
quarter-over-quarter) totaling $640,000
- Strong Cash position, boosted to
over $2 million during Q2 2020
- Positive cash flow from
operations of over $764,000 for the six months ended June 30th, 2020
RXMD is focused on driving robust growth
in the second half of the year from traditional pharmacy services, but
management anticipates a materially increasing impact from health data
analytics as it accelerates the development in its new ClearMetRx platform, the
RXMD wholly-owned data analytics company with services designed to
support health care organizations across the country. The company has unique
expertise in health data analytics and data management and has begun to market
these services to healthcare entities. Continued development of automated
systems and digital assets to support these data-driven products and services
is expected to drive future revenue and profitability growth.
The impact of
health data analytics services can be seen in connection with the RXMD role
serving as a Third-Party Administrator for a growing number of 340B eligible
clients. For the three months ended June 30, RXMD saw total sales
related to 340B clients jump 314% on a year-over-year basis.
Ø Significant
Expansion to Establish Full-Service PharmCo Operations and Rapid Covid Testing
Services in Orlando Regional Market
On July 29th
RXMD announced expansion of its PharmCo branded pharmacy operations and
presence in the Orlando metropolitan area. RXMD is moving out of its
current Orlando pharmacy location, which is a 700 square-foot mini-pharmacy
operating under the “Five Star” brand designation, to a 3,700 square-foot
full-size pharmacy that will open under the PharmCo brand designation. The
move, which represents an expansion in property size of more than 400%, will
not increase monthly lease costs.
This move will also allow for a dramatic expansion in the RXMD services
and products offered in the Orlando market, including the full scope of PharmCo
pharmacy goods and services, as well as therapy management, patient management,
cost management services, and rapid-results testing services (COVID-19 IgG/IgM)
as authorized by the FDA under its Emergency Use Authorization (“EUA”)
guidelines for conducting SARS-CoV-2 antibody presence and COVID-19 infection
diagnosis testing.
For more information on Progressive Care, Inc. (RXMD) visit: https://www.progressivecareus.com
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