MIAMI, FL -- May 18, 2020 -- InvestorsHub NewsWire
-- Progressive
Care Inc. (OTCQB:
RXMD) (“Progressive Care” or the “Company”), a personalized
healthcare services and technology company, is pleased to report
financial results for the quarter ended March 31, 2020, which
featured very strong revenue growth, especially considering the
unique operating conditions during February and March due to the
SARS-CoV-2 global pandemic health crisis. During the associated
earnings call, management outlined specific competitive advantages
and new initiatives positioning the Company for strong growth
across all major metrics throughout 2020.
S. Parikh Mars, CEO of Progressive Care, commented, “The novel
coronavirus has dramatically changed the landscape in countless
ways, and many businesses are suffering from a pervasive lack of
predictability and a torrent of new and unique existential
challenges. Yet, despite it all, Progressive Care continues to see
dramatic overall growth driven by strong execution, flexibility,
and efficient positioning. We remain better positioned than most of
our competitors to respond effectively to these extraordinary and
unusual challenges, and to take full advantage of the many exciting
opportunities for growth that lie ahead.”
First Quarter 2020 Highlights
- Consolidated quarterly year-over-year growth in Net Sales of
75% to surpass $9 Million for Q1 2020
- Prescriptions filled surpasses 134,000 in Q1 2020, up 59%
versus Q1 2019
- March 2020 set new Company record for monthly prescriptions
filled
- 340B Agency Revenue jumped 76% (vs Q1 2019) to nearly
200,000
- Net Loss of $795 K almost entirely attributable to PBM fees,
with Q1 impact exaggerated due to seasonality of performance
reimbursements
During the earnings call, Mars discussed dynamics important to
interpreting the Company’s Q1 data and outlined a series of
additional initiatives and projects currently underway that will
further improve the Company’s financial performance and competitive
positioning in 2020.
As discussed on the call, the root cause of the Company’s
consolidated Net Loss for the quarter centered on a combination of
major increases in fees charged by PBMs in 2020 and the seasonal
timing offer accrual versus performance incentive reimbursements.
This was further accentuated by the fact that many insurance
carriers switched to PBMs that charge high fees to pharmacies in an
attempt to keep the cost of prescription benefits low. These
changes have resulted in a high concentration of the Company’s
claims being processed by a single PBM, which has, itself,
increased its fees nearly 3-fold in 2020. As of 2020, only one PBM
offers the ability to receive refunds of fees through
performance.
Fees charged by PBMs are not transparent at the time of
adjudication, but the Company’s robust analytics gave it a reason
to believe an accrual of high fees was necessary even though they
have yet to be taken from remittances. The Company recorded
approximately $643,000 in fees for the quarter.
The costs associated with producing audited financial data for
2019 were included in Q1 data, representing an additional
non-recurring item boosting the apparent Net Loss for the
quarter.
Looking ahead, the Company is extremely excited about dramatic
gains already being seen in Q2 in terms of growth in new patients.
Progressive Care has already added over 1,000 new patients in Q2,
which may represent as many as 5,000 additional prescriptions
filled per month during the current quarter.
In addition, the Company has recently launched a full e-commerce
segment as well as its new COVID-19 IgG/IgM rapid result antibody
and diagnostic testing program. Both are now up and running on a
nationwide scale.
Key Q2 Initiatives and Projects
- Build out of 400 Ansin. Consolidation of operations is underway
in 2020 and is expected to yield approximately$300,000 in savings
in 2021.
- E-commerce. Progressive Care is currently expanding the range
of products available on its e-commerce platform, as well as
upgrading platform functionality. Despite a nominal advertising
budget, e-commerce has steadily increased in volume since the
platform was launched in April 2020.
- COVID-19 Antibody Testing. Testing is underway at the PharmCo
Miami location. The Company secured a supply of tests manufactured
by a company that has filed for EUA registration with the FDA.
Tests are currently being offered through: 1) health care
providers, 2) a testing service for employers, 3) through retail to
individual consumers. Tests must be performed by a health care
professional. The Company anticipates rapid growth in this program
as the lockdown phase gradually winds down.
- RXMD Therapeutics. The Company has adopted an acquisition
strategy for RXMD Therapeutics for compliance and risk mitigation
purposes. The Company has already issued a proposal to an existing
brand of cannabidiol products.
- SEC Registration. The S-1 filing and the uplisting process is
now the most important priority for the Corporate team. The Company
is updating its prospectus information in the draft of the S-1. The
timeline continues to be 2020 with the S-1 filing to be in the
coming weeks.
Mars continued, “Progressive Care has demonstrated that it is
uniquely well prepared for the challenges presented by the current
context, and we continue to drive strong growth with very
encouraging trends already in place in Q2. Through our services,
patients and healthcare providers can get the support they need no
matter the restrictions placed on their lives. We pride ourselves
on our ability to deliver best-in-class care for our patients under
any conditions.”
For more information about Progressive Care, please visit the
company’s website.
Connect and stay in touch with us on social media:
Progressive Care Inc.
https://www.facebook.com/ProgressiveCareUS/
https://twitter.com/ProgressCareUS
PharmCo,LLC
https://www.facebook.com/pharmcorx/
https://twitter.com/PharmCoRx
FiveStar RX
https://www.fivestarrx.com/
https://www.facebook.com/fivestarrx/
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.
Investor Relations Contact:
Armen Karapetyan, Progressive Care
Senior Advisor Business Development
Armen@progressivecareus.com
www.progressivecareus.com
www.pharmcopharmacy.com
Public Relations Contact:
Carlos Rangel
carlosr@pharmcorx.com
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