September 17, 2020 (Viz Release) – – 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.
– Established Healthcare Provider Moving to Acquire Telehealth Business.
– Multiple Subsidiaries Generating Strong and Growing Revenues.
– Q2 Consolidated Net Revenues for Last 6 Months Totaled $18.3 Million.
– Strong Balance Sheet with Over $2 Million in Cash.
– Significant Business Expansions and Rapid Covid Testing Services.
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(tm) (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(tm), MyApps also has a portal named FindingDr(tm), 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.
– 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.
– 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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