ScripsAmerica Signs Business Management Agreement With a New Jersey Compounding Pharmacy
February 20 2014 - 8:30AM
ScripsAmerica, Inc. (OTCBB:SCRC) today announced
that the Company has entered into a business management agreement
with a New Jersey compounding pharmacy.
The agreement states that ScripsAmerica will manage all business
operations of the pharmacy which specializes in compounding topical
pain creams, in exchange for a percentage of its total revenue.
These creams are experiencing growing demand because they provide
an effective alternative to pills that can be more easily ingested
in higher doses than originally prescribed. Since February 14th,
ScripsAmerica's efforts have generated $57,000 in revenue.
The Company has previously announced plans to enter the rapidly
growing compounding pharmacy market to create a new revenue stream
and increase shareholder value. The compounding pharmacy industry
is set to benefit from improved conditions over the next five
years, according to a November 2012 IBIS research report. A key
factor contributing to the overall growth of compounding pharmacies
is the introduction of regulation US Pharmacopeia (USP) chapter
797. This regulation took effect in 2004 and was developed to help
improve patient safety by developing standards designed to reduce
large content error and contamination errors in compounded sterile
products.
Further, a December 2012 article by the American Journal of
Managed Care cites that pharmacies specializing in compounding have
become more prevalent, citing the primary reason as drug shortages
which have become more frequent over recent years. The American
Society of Health-System Pharmacists currently lists a shortage of
235 products on its website. Another factor for expected growth in
this market is the increasing number of Americans aged 65 and over,
supporting demand for medications from the compounding industry
that cannot be met by conventional medications.
CEO of ScripsAmerica, Bob Schneiderman, commented, "This
agreement will provide very high profit margins for ScripsAmerica
and represents our entry into the rapidly growing compounding
pharmacy market. This marks a positive milestone for the company as
it adds a very profitable business that will further grow and
diversify our ScripsAmerica's revenue streams."
"This is a very exciting time for ScripsAmerica as we continue
to expand our pharmaceutical enterprise. By broadening our presence
in several niche markets, growing our drug distribution network of
independent pharmacies and commencing the successful launch of our
innovative RapiMed pain reliever in Asia, 2014 is set to be a
breakout year for Scrips' shareholders," continued
Schneiderman.
About ScripsAmerica, Inc.
ScripsAmerica, Inc. is a supplier of prescription, OTC and
nutraceutical drugs, delivering pharmaceutical products to a wide
range of end users across the health care industry. End users
include retail pharmacies, hospitals, long-term care facilities and
government and home care agencies. For more information, visit
www.ScripsAmerica.com.
Safe Harbor Statement
This release includes forward-looking statements, which are
based on certain assumptions and reflects management's current
expectations. These forward-looking statements are subject to a
number of risks and uncertainties that could cause actual results
or events to differ materially from current expectations. Some of
these factors include: general global economic conditions; general
industry and market conditions, sector changes and growth rates;
uncertainty as to whether our strategies and business plans will
yield the expected benefits; increasing competition; availability
and cost of capital; the ability to identify and develop and
achieve commercial success; the level of expenditures necessary to
maintain and improve the quality of services; changes in the
economy; changes in laws and regulations, including codes and
standards, intellectual property rights, and tax matters; or other
matters not anticipated; our ability to secure and maintain
strategic relationships and distribution agreements. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
CONTACT: 888-959-7095
ir@sealpointconsulting.com
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