OTCs Breakout Board

[EBW31]

RXMD / Pharmacy News

Great RXMD news this week, but we knew most of it. I know I was quiet today, but I was busy buying at the best price I could on today's dip. As I mentioned the other day, I think there's still a little bit of time before debt pay down is complete - maybe 2 weeks, possibly another week or two. But I didn't want to risk it starting to ramp up again (considering that they could publish news on the debt paydown status or October revenue as early as tomorrow, even).

Someone asked yesterday or today what are some good reasons for buying stock in a company like RXMD. So I gathered a few recent news items to ponder.

Here are some news items and articles that show the recent trend in consolidation and other opportunities for companies like Progressive Care RXMD. It's exciting to have a piece of a company in a sector like this with nowhere to go but up! There are few - if any - publicly-traded companies like RXMD that you can buy into at this low price and with so much potential to grow. Positive cash flow, operational profit, debt nearly paid off completely, and in a high growth market... and now with plans to add robotic dispensing (more prescription volume, efficiency - revenue, profit) and expand to Palm Beach County!

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Very recent news (note that prescriptions and services to assisted living / long-term care facilities is a big part of RXMD PharmCo's revenue and growth potential):

August 2015 - CVS Health (CVS) said Thursday that it has agreed to buy pharmacy services provider Omnicare (OCR) for about $12.7 billion, a move to expand its presence in the senior care market.

CVS will pay $98 per share in cash and assume $2.3 billion of Omnicare's debt.

Omnicare, the nation's largest provider of pharmaceutical services in nursing homes, has 160 locations in assisted living and long-term care facilities in 47 states in the U.S.

"The acquisition of Omnicare significantly expands our business, providing CVS Health access into a new pharmacy dispensing channel," said CVS Health CEO Larry Merlo in a statement.

With Baby Boomers aging, the long-term care industry is estimated to grow rapidly in the coming years. By 2050, one-fifth of the total U.S. population will be 65 or older, up from 12% in 2000, according to Congressional Budget Office. And nearly all nursing homes and residential care communities offer on-site pharmaceutical services. In the first quarter, Omnicare's sales rose 5.6% to $1.7 billion.

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Very recent news:

November 2015 - Ahead of its annual FY’15 earnings release, Walgreens announced that it will acquire rival Rite Aid for $17.2 billion dollars, all in cash.

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This is a pretty recent article:

Specialty Pharmacies (SPs) are predicted to have over a 200% increase in growth over the next few years. There’s very good reason for this: by 2018, seven out of every 10 dispensed medications will be specialty pharmaceuticals as opposed to the three out of 10 being dispensed today. This enormous leap forward presents both changes and challenges to the way specialty pharmaceuticals are dispensed. - See more at: http://www.axiumhealthcare.com/specialty-pharmacy-quality-care/#sthash.4b0xkgUc.dpuf

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This is a pretty old article but interesting, nonetheless, and still frequently cited:

While nonspecialty drugs plod along with year-to-year spending increases of between 2 and 6 percent, specialty drug costs are zooming forward more than 10 percent annually. An Express Scripts report projects the share of drug spending devoted to specialty pharmaceuticals to increase from approximately 19 percent in 2006 to 26 percent by 2010. As a result of higher utilization owing to expanded indications and to a blossoming pipeline, specialty pharmacy expenditures are expected to reach $100 billion annually by 2010. If current trends continue, by 2030, specialty pharmacy costs will exceed $1 trillion a year and account for as much as 44 percent of a health plan’s total drug expenditures. - See more at: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2706163/