Progressive Care Releases Open Letter to
Shareholders
Open Letter to Shareholders Summarizes Recent
Milestones
MIAMI, FL --
January 17, 2019 -- InvestorsHub NewsWire -- Progressive Care Inc.
(OTCQB:RXMD),
through its PharmCo subsidiaries, is a South Florida health
services organization and technology company, releases the
following letter to Shareholders from the Company's Chief Executive
Officer, S. Parikh Mars:
Dear
Progressive Care Shareholders,
2018
and the years before it set the stage for evolution. Through
careful planning, thoughtful solutions, and nimble mobility during
tumultuous times, we have built a company capable of enduring. We
achieved more last year than we have in any other year, but there
is precious little time to appreciate all that we have
accomplished. 2019 is the year to execute on big
objectives in order to make our mark on an industry that
looks to consolidate and eliminate those that fall behind. We aim
to lead and believe that the industry will begin to look to us for
answers.
Today, anticipation of our future
is building. We look at the opportunities in front of us with
steadfast intent and a knowledge that the choices we make this year
will forever change the face of this organization. We cannot be
intimidated by the uncertainty around us, but rather move forward
with confidence in our path. We will only be successful by moving
together with singular purpose. We will tell our story to all who
will listen and show them the virtue of our mission and the prosperous results
of our goals.
We
understand that our shareholders have been a profound source of
support for us. You have believed in the mission and rallied around
our story as we began telling it to the world. We do not take for
granted your loyalty and know that we must work to make you proud
every day. We hope that you are as proud of 2018 as we are and look
to 2019 with
deepest sense of optimism.
Significant Achievements
We
begun 2018 with
our listing on OTCQB dramatically changing the status and
visibility of the Company. The change in listing tier provided more
comfort to the market and our shareholders that the information
being presented can be relied upon. Our level of transparency
reassured the investing public that our Company
was different from the rest and taking steps to ensure that the
market had the most up to date information we had to offer. We
combatted naked short sellers and worked hard to protect our
shareholders from bad actors and those that would disseminate false
or misleading information about the Company. These efforts
stabilized the market and improved its integrity.
After reaching record revenues in
2017 of $20 million the Company moved forward on an agenda that
would make us more resilient in the face of industry changes and
push past our competitors in terms of service, expertise, and
technology. We sought to lead through our actions and capitalize on
years of hard work in the face of adversity. We also sought to
grow, not just through organic same store sales but through
acquisition.
Early in 2018, we planted the seeds
of growth by filling record numbers of prescriptions and
issuing an LOI for our
first acquisition. Execution on these fronts was crucial as our
expansion into Palm Beach was accelerating and our same store sales
would set the tone for the rest of the year. Quickly, we saw new
clinics and doctor's offices turn to PharmCo for pharmacy support
as the necessity of patient adherence became abundantly apparent on
performance scores. Our reputation for excellence on this front
preceded us and we understood our prescription growth in 2018 would
outpace 2017.
The
second quarter brought extreme challenges and overwhelming
joys. In April
2018, it became clear to us that insurance companies were
drastically reducing reimbursement rates and benefits to patients.
These aggressive cost cutting measures implemented by PBMs across
the board greatly reduced revenue per prescription across all
segments but compounding especially. While we devoted significant
efforts to advocacy for our patients and expounded the detriment
these measures were causing, the formulary changes and
reimbursement rates remained. In addition, the implementation of
higher DIR fees and other charges changed the way
we evaluated our
profitability and which sectors to focus our
attention.
However, we were accustomed to
dramatic industry shifts. We adapted and remained undeterred in our
drive to succeed. We installed a new automation system to improve
our adherence offerings as well as keep pace with the technological
developments of our peers. We rolled out our web-based prescription portal to
improve engagement with our customers. We engaged CMW
Media
to increase the
visibility of our story and guide on our leadership path. Finally,
we secured our first acquisition making PharmCo a 2-store brand in
South Florida.
The
acquisition of our second store is particularly special for us
because of the work it took to get to that point. Finding a good
location and a synergistic operation was difficult and valuations
seemed to be beyond our reach. Securing the business, we did at the price we did was
fortuitous. It allowed us to avoid months of regulatory hurdles,
and hundreds of thousands of dollars of additional up-front costs
that would have been necessary had we decided to start a new
operation. It came with upgraded equipment and a team eager for
growth and change. We rebranded the company under PharmCo
and began to
integrate it into our organization and culture.
We
also, for the first time ever, met all of Humana's quality
measures. These measures are exceptionally difficult to meet and
only the top 20% of pharmacies in the nation reach
the goals set. Not only
did we meet the goals, we far exceeded them, making PharmCo one
of the top performing pharmacies in
the country.
Over the summer we launched new
initiatives and expanded on our core competencies. We sought
to combat the opioid crisis through increasing awareness of
available non-opioid treatments and the need for better education
and training for pain management. We understand that there are
obstacles to reducing opioid dependence as systemic structures
prevent cogent solutions. Yet, as healthcare providers, we cannot
sit idly by and watch our communities suffer without our
intervention. We must act and we have worked to lend our voice to a growing
chorus yearning for change and results.
We
began our DischargeRx program designed to reduce to
post-discharge non-adherence and preventable readmissions. Our
program was piloted as Westchester Hospital for independent
home-based patients and proved useful. Our ability to deliver
prescriptions directly to the patient on the same day of discharge
greatly increased the likelihood of post-discharge medication
adherence. Eliminating impediments to care at home has proved to be
our most valuable asset in reducing healthcare
costs.
Toward the end of 2018, we began to
receive media attention for the work that we have been doing to
lead the industry down a new, more engaged path. Our message of
personalized medicine was reaching new ears and industry
publications were taking notice of our expertise in the field. We
published numerous articles, conducted interviews, and spoke at
conferences to push our vision of the future of pharmacy in front
influential eyes.
We
launched our Tele-pharmacy platform. This platform allows for live,
secured, video-conferencing between patient and pharmacy is the
future of digital facilitation of healthcare engagement. Upon this
platform, we will be able to create a full-suite of digital
healthcare solutions that will begin the technology revolution of
our industry. It is an example of our leadership in the
space.
Lastly, our proudest achievement, is the closing on PharmCo's first
property. The building of over 11,000 square feet will be
the flagship facility, allowing for growth long limited by
space. The building will house general pharmacy operations, long
term care solutions, tele-pharmacy support, medication therapy
management center, and corporate offices. Its location just off I-95 not only provides for speedy
delivery but also means that passers-by will see
our company from
the highway.
2018
provided the foundation of our future. We believe our achievements last year will be
remembered as the turning point for Progressive
Care.
2018 Key Highlights
-
Completion of
2017
Audited Financial
Statements
-
Secured first acquisition: PharmCo
1002 (Palm Beach County)
-
Paid off all CVP
notes
-
Introduced Bitcoin and
cryptocurrency functionality
-
Launched Newly Designed
Websites
-
Launched New Prescription
Platform
-
Launched DischargeRx Program
-
Launched
Tele-PharmCo
-
Launched 340B Backoffice
Support
-
Launched Program to Opioid
Abuse
-
LegitScript Certification
-
Pilot Program: Westchester
Hospital
-
Over 300,000 prescriptions filled
an increase of
35%
-
Over 30,000 prescriptions filled in a
single month
-
Approx. $21 million in net
revenues
-
5-star rating
-
Top 20% Pharmacy in the
nation
-
Highest Humana Scores in Company
history
-
4 active 340B
contracts
-
Increased 340B revenue by over
150%
-
Processed over $6 million in claims
on behalf of 340B entities
-
Reached over 70 employees
-
Licensed in the following
states: Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Pennsylvania, Texas, Utah, Arizona, Massachusetts, Minnesota
-
New PR Partner: CMW Media
-
New Investment Bank: The Benchmark
Company
-
FlyPharma Speaking Engagement
-
Florida Tele-health Summit Speaking
Engagement
-
Contributed Articles published in
prestigious industry trade magazines: Pharmacy Times, Pharmacy
Business, World Pharma Today, Drug Topics,
Authority
-
Purchase PharmCo's first building:
400 Ansin
Blvd
Outlook
The
Company has never been more optimistic than it is beginning this
year. 2019 will undoubtedly bring hardships, but this
Company has proven resilient and unfazed by
headwinds no matter its cause. 2019 will be a year of tremendous
transformation as we leap into our technological objectives. We
intend to develop our own proprietary software for a number of
applications that will greatly improve the way the healthcare
industry interacts amongst itself and its patients.
The platforms developed
in 2018 will provide the base for further advancement, that will
make the Company steps ahead of our competitors and
create
additional revenue
opportunities.
We plan to begin development of our own line
of CBD products to increase awareness of its therapeutic
capabilities. We intend to provide patients with a brand of
products that is easy to use, easy to understand, and meets the
highest standards the industry has to offer. Putting our reputation behind the products
we create will
help patients
feel comforted in the knowledge that a healthcare company stands
behind the product they use for their well-being.
We
expect to close on another acquisition. Growth through acquisition
will improve our profitability, scale, geographical reach, and
negotiating power with other organizations and insurance carriers.
Upon execution of the acquisition currently underway, we hope
to double
the size we are
today.
As
always, we intend to continue to develop our core
products and services, providing best in class solutions for
medication therapy management, health consultations, compounding,
long term care, post-discharge care, risk management, 340B, and
adherence. Through further growth in these areas, we will increase same store
prescriptions filled and revenues.
The
following are
our strategic goals for 2019:
-
Achieve 40,000 prescriptions filled in a
single month
-
Increase annual same store sales
to $24 million
-
Close on second acquisition leading
to consolidated revenue of over $35 million
-
Secure additional 340B contracts
and long-term care facility
relationships
-
Achieve accreditation for
non-sterile compounding
-
Achieve full enterprise profitability and
earnings growth
-
Install Tele-PharmCo enabled kiosks
and equipment in senior living communities and large-scale
clinics
-
Develop exclusive line of CBD
products
-
Conduct PharmCo evidence-based case
studies
-
Release PharmCo's first televised
advertisement
-
Become SEC registered and fully
reporting
Closing Remarks
We
start 2019 gazing out into an ocean of opportunity. Standing on the
deck of a ship built to withstand headwinds and uncertainty, we set
a course forward with fortitude in our spine. We who work here
every day, buzz and hum with electric invigoration as we anticipate
the exciting days ahead for a company with so much promise and
purpose.
In
2018, we dug in, fought hard, built a trust in each other to take
leaps together. The healthcare landscape changed and we persevered,
undeterred by circumstances beyond our control. We grew, we
evolved, we stepped forward to lead the industry and today, while
we appreciate the difficult road behind us, we look to
future.
As
shareholders, we place our well-being and futures in the hands of
this organization. We continue to believe in its mission and know,
through faith and foundation, that the future is bright, and our
achievement will rest on the solidarity of our team. It is
humbling, the trust bestowed upon us who spend long days and nights
here and we are immensely grateful for that trust. 2018 was a year
of pride, strength, execution but 2019 will make the company of
2018 unrecognizable in the distance.
Thank you all for
coming
with us
on this
journey.
Best
regards,
S. Parikh Mars,
Chief Executive
Officer
Progressive Care,
Inc.
About
Progressive Care
Progressive Care Inc. (OTCQB:
RXMD), through its PharmCo subsidiaries, is a South Florida health services
organization and provider of prescription pharmaceuticals,
compounded medications, provider of tele-pharmacy services, the
sale of anti-retroviral medications, medication therapy management
(MTM), the supply of prescription medications to long-term care
facilities, and health practice risk management.
Cautionary
Statement Regarding Forward Looking Statements
Statements contained herein that are not
based upon current or historical fact are forward-looking in nature
and constitute forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements
reflect the Company's expectations about its future operating
results, performance and opportunities that involve substantial
risks and uncertainties. These statements include but are not
limited to statements regarding the intended terms of the offering,
closing of the offering and use of any proceeds from the offering.
When used herein, the words "anticipate," "believe," "estimate,"
"upcoming," "plan," "target," "intend" and "expect" and similar
expressions, as they relate to Progressive Care Inc., its
subsidiaries, or its management, are intended to identify such
forward-looking statements. These forward-looking statements are
based on information currently available to the Company and are
subject to a number of risks, uncertainties, and other factors that
could cause the Company's actual results, performance, prospects,
and opportunities to differ materially from those expressed in, or
implied by, these forward-looking statements.
Contact
Armen Karapetyan
Senior Advisor Business
Development
armen@progressivecareus.com