Progressive Care Reports
Stellar Third Quarter Results
MIAMI, FL -- November 15, 2017 -- InvestorsHub NewsWire --
Progressive Care Inc. (OTC
PINK:RXMD), through its subsidiaries Smart Medical Alliance,
Inc. and PharmCo, LLC, is a South Florida health services
organization and provider of prescription pharmaceuticals,
compounded medications, the sale of anti-retroviral medications,
medication therapy management (MTM), the supply of prescription
medications to long term care facilities, administration and
practice management, utilization management, quality assurance, EHR
Implementation, billing and coding, and health practice risk
management, announces financial results for the third quarter and
provides updates on the Company's strategies.
The company dispensed a total of 163,000 prescriptions during
the nine months ended September 30, 2017, an increase of 2.5%.
Revenues for the third quarter increased 5% to just over $5.1
million. Revenues increased 14% for the nine months ended September
30, 2017 to over $15 million. The Company continues to grow its
patient base by marketing to doctors' offices and clinics who refer
their patients to the pharmacy. Healthcare providers are
increasingly recommending PharmCo because of its high standards of
patient care and attention to performance measurements and their
implications.
Operating income decreased by approximately $250,000 in 2017 as
compared to 2016. Third quarter operating income was negatively
impacted primarily by increases in DIR fees. "DIR" stands for
"direct and indirect remuneration" and was initially a term coined
by the Centers for Medicare and Medicaid Services (CMS) related to
the Medicare Part D benefit to address price concessions that would
ultimately impact the gross prescription drug costs of Medicare
Part D plans that were not captured at the point of sale. Today,
DIR fees are effectively PBM clawbacks of reimbursements based on
factors that vary from plan to plan. These fees lack transparency
and are extremely difficult to predict and accrue. DIR fees are
often applied retroactively, which has caused the cost of DIR fees
to be nearly 200% higher than in the second quarter of the year.
DIR fees through September 30, 2017 was over $300,000, over half of
which was incurred in the third quarter. Some PBMs may reduce or
return DIR Fees based on the performance of the pharmacy within
their network.
Q & A Updates
- New States - The Company has renewed its efforts to acquire
state licenses. PharmCo has licenses pending in three new states:
Utah, Arizona, and Rhode Island.
- Investor Relations First Look Equities is tasked with PR
distribution. Their distribution platform is designed to increase
the number of readers of the Company's press releases and
information which would ultimately have a positive impact on
trading volume and shareholder value. The Company is also looking
to recruit its own in-house IR team that would work to increase
shareholder value.
- TelePharmacy The Company is working on a proprietary platform
that would deliver technician or pharmacist consultation services
direct to patients or healthcare providers through a secure digital
live stream. This platform is currently being tested in Century
Village of Pembroke Pines and has had an impact on company
recognition, brand loyalty, and prescription processing
efficiency.
- OTCQB The Company has submitted all required paperwork to OTC
Markets for its review of the Company's OTCQB application. The CEO
recently submitted follow-up information to OTC Markets as part of
its review. The process is ongoing, but the management expects the
change in listing tier to be completed before the end of the
year.
"PharmCo over the years has become known for its unique delivery
of patient care," stated S. Parikh Mars, CEO. "We see growth every
month from clinics and healthcare providers who need and rely on
what PharmCo does in the pharmacy industry that no other company
does. We are leading the way despite headwinds from PBMs and
regulatory uncertainty. We have accomplished a great deal this year
so far and we know that there is so much more that we need to do.
We will grow, we will outperform our peers and we will deliver
value to our shareholders.
About Progressive Care
Progressive Care Inc. (OTC
PINK:RXMD), through its subsidiaries Smart Medical Alliance,
Inc. and PharmCo, LLC, is a South Florida health services
organization and provider of prescription pharmaceuticals,
compounded medications, the sale of anti-retroviral medications,
medication therapy management (MTM), the supply of prescription
medications to long term care facilities, administration and
practice management, utilization management, quality assurance, EHR
Implementation, billing and coding, 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
Progressive Care, Inc.
Investors@progressivecareus.com
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