OptimizeRx Corporation (OPRX)

[gjervis]

OPRX Solidifies Distribution Lead With Exclusive
Partnership With Allscripts;

http://www.optimizerxcorp.com/investors/OPRX_BUY_8_4_15.pdf

[gjervis]

Bought more $OPRX based on the news release today

[gjervis]

Added more again at $1.00. will happily add at these prices as cash becomes available.

[gjervis]

Added more $OPRX

[zk12]

good stuff coming

[gjervis]

A big boy is getting into OPRX today also it seems.

[gjervis]

Added more today.

[gjervis]

I re read the Q1 and they really had alot on their plate and it was really a matter of timing. I am a buyer here and i expect Q2 to be very encouraging.

[4retire]

I think you're right and apparently the company is not helping him get his price by keeping quiet on any possible major developments.

There's many reasons why a shareholder might feel the need to sell....even at a loss, and I'm not reading anything into it. I just wish he would get it done so normalcy might return. Buying opportunity?????

[gjervis]

Seems we have a seller calling it a day and getting out at any cost. Or am i missing something here?

[gjervis]

Added more today.

[kylegar15]

Awesome, Thanks will do!

[gjervis]

they also presented at the Marcum conference last week. i emailed the CFO Doug Baker who then emailed me their latest Investor presentation. You can email him at [e-mail] and he will send the IP.

[kylegar15]

Came across the stock a couple days ago but I like the revenue growth from q1 2014 to q1 2015. Very positive. But I'm looking forward to the growth in a few years when hopefully revenues are in the tens of millions with eps growth..If the business model works out..I liked what I heard in the last CC..and the research reports are bullish/helpful insight too.

[gjervis]

Any thoughts on the most recent 10Q?

[gjervis]

Seems the market is agreeing with you. Market wasn't impressed by the end of year results. Hope this changes in 2015. $OPRX

[4retire]

I hope you're extremely successful. While sales were strong, the gross profit is narrowing with the new business model of aggressive revenue sharing..... that caught a lot of us by surprise last quarter.

[gjervis]

I liked their 10K and the CC. i have initiated a position and expect a strong 2015 and beyond.

[ListenToMe]

Oprx... in a range

[ListenToMe]

nice little gapper open here... OPRX.

[Wolfberry]

Read the 8-K filing that was posted late today, 12/11. This is big !
Wolfberry

[ListenToMe]

23 followers

[vlscout]

Right. This company is on probation until numbers improve.

[DragonKrys]

I think the most disappointing number in today's report was that revenue share is up to 53%. It was also stated in the Q, and reiterated on the call, that future quarters will be similar.

This is a drastic departure from last quarter when revenue share was just 37% and the following color was in the Q: "We expect revenue share expense to move back towards the 40% level as distributions increase as the result of the launch of new distribution channels."

I think it's safe to say most were already skeptical of that "40% level" given LDM's share, as even Merriman and Noble analysts used 45% for their modeling. Still, gross margins dropping below 50% for the first time was a surprise.

[4retire]

Why is this stock being pummeled?

[4retire]

We're down almost 32% over the last three months. Have the fundamentals changed? Don't think so. Market sentiment is apparently a powerful force that flies in the face of balance sheets and potential.

[Wolfberry]

look at the revenue today vs 24 months ago.

[4retire]

Well, it comes down to whether you feel the company has more upside than downside. You're right....there have been some unwelcomed stalls, misplays, fluff statements that have delayed the perceived value. Installing a dynamic leader would be an excellent move.

[DragonKrys]

It's unfortunate that management has done a poor job of setting investor expectations. The fluff PR last month preannouncing "improved operating results" for the quarter is the latest example. Some of these operational issues may have been beyond management control, but overpromise and underdeliver enough times and you end up with the valuation we have now. At least we now know that Q3 will be more of the same and that operational and financial improvement should come in Q4 with the resolution of Allscripts issues (technical and opt-in), integration with new platforms (Quest, eHealthline, NextGen, LDM), and end of the excessive stock comp. It's also good to see the settlement with Physicians Interactive, as this removes the outside risk of another LDM-like royalty or worse.

I suspect the average revenue per distribution has declined a bit from the $4.25 a year ago. The release cited a 30% rise from Q1, while revenue increased just 10% sequentially. This was at least partially due to a higher share of setup fees in Q1 as indicated on the call. However, even if we were to assume that Q2 revenue was 100% distributions (it wasn't, as indicated by the gross margin), this would yield only 342k dists at $4.25. A 30% rise from last quarter would suggest just 263k in Q1. These numbers are low relative to the publicly stated figures last year, Allscripts issues aside. I mention this because we're no longer given distribution figures or revenue per distribution, yet the loose target of 1M dists for Q4 was reiterated on today's call. I know some (myself included) were previously modeling this guidance to mean a quarterly run-rate of $4M+ by Q4, but this is clearly no longer the case. On the positive side though, the gross margin of 63% (likely 60% on the distributions themselves) is considerably higher than I was expecting at the time of the LDM settlement.

On the macro front this quarter, I've only seen a few items impacting the copay coupon market.

- UnitedHealthcare rescinded their March plan to ban coupons, probably due to pushback from at least one of the national pharmacies (CVS, Walgreens?). I doubt such efforts will gain traction, as pharmacies have nothing to gain and plenty to lose by yielding to such a ban (loss of customers, potential loss of higher branded dispensing fees), nor does an insurer have any enforcement (or even knowledge of) coupons processed as secondary claims.

- In June, NJ courts denied Merck's motion to dismiss so the case against their use of copay coupons may proceed. However, similar cases have been heard and none (to my knowledge) have succeeded.

- The more worrisome news is this month's formulary announcements from CVS and Express Scripts. There are a number of new exclusions targeted at drugs with the most prevalent coupon programs. Worst case scenario, it's important to remember that only about half of coupon programs target drugs with generic competition.

I was unfortunately a buyer at higher prices earlier this year but see no rush to accumulate more. The bottom may be in at $1.10 but I expect we'll be rangebound for a few months. After the past two disappointing quarters, I believe investors (including myself) are going to want to see results before bidding this materially higher.

[FrankLind]

CC transcript

http://seekingalpha.com/article/2428405-optimizerxs-oprx-ceo-david-harrell-on-q2-2014-results-earnings-call-transcript?part=single

Things are fully on track.
These prices won't last long.

[umiak]

Thanks FL

[FrankLind]

Waiting for the CC tomorrow.

Things are happening a little slower than I expected, but seem on track overall. OPRX are executing on their side, but Allscripts is not.

Revenue would have been significantly higher in this quarter had it not been for this -

"Our sales and profitability during the six month period was significantly impacted because Allscripts had privacy and technical issues that affected their distribution of eCoupons and other programs during a significant period of time it took to fully resolve them. Allscripts has resolved their privacy issues. However, they have not fully resolved their technical issues resulting in only about half the volume potential being distributed in their eRx platform. Additionally, the roll out activation of SampleMD eCoupon automation within Allscripts PRO, versus requiring them to manually turn the e-Coupon on, has yet to be accelerated as they outlined. However, we have met with senior management and they have agreed to assign this a top priority for the remainder of 3Q and expects the rollout to achieve significant impact to both companies."

I also think it significant that, despite the obstacle outlined above, distributions increased 30% sequentially from the first quarter. This shows the momentum.

They are rolling out into Quest, e-Healthline and LDM over the next two quarters as well as continuing to add new drugs.

In regard to the competition - "We reached a settlement in our lawsuit with Physicians Interactive whereby both parties released their claims. This will allow us to stop spending money on the lawsuit and focus on increasing our already dominant market position."

Can't speculate what is going on with the other lawsuit and if it has any chance of succeeding. (for 930,000)

I think the story is fully intact and $1.19 with 23.2 million FD for a company of this quality (op lev', market position, tailwinds, revenue growth, high level relationships) is a bit of a joke.

[4retire]

I believe you will be correct. The allscripts thing last quarter was an unpleasant surprise. That's what I was referring to.

[esteem]

I don't see how there can be ANY surprise. There's absolutely nothing I can see that could prevent them of reporting anything less then a stellar earnings report. In my years of trading I've always seen the biggest spikes in pps after a sharp drop. I'm hoping that's the case here. Again, I do NOT see any reason why this stock will not report another great qtr. Good Luck

[4retire]

If we don't get another unpleasant surprise for the quarter, this should elevate quickly.

[esteem]

And that trade seemed to have scared some away. Tsk Tsk!
If they have done their due diligence they would have know that even at $1.80 this was a buy. At $1.30 it's a fire sale...which is why i added. ;)

[umiak]

That 570K was intense. Went off at $1.40.

[umiak]

Outside directors and both yoy/q to q improved revenue, NICE!:

The Company is currently interviewing and finalizing the selection of Directors with health care, technology, business, or investment experience and expects to announce at least 2 outside Directors during the third quarter.

The Company plans to announce its 2nd quarter operating results in early August and expects increased revenues and improved operating results over both the same quarter of 2013 and the first quarter of 2014.

[FrankLind]

Shareholder update.

http://irdirect.net/pr/release/id/722262

[umiak]

How convenient, they have a $3 price target too, HA!

[FrankLind]

Merriman initiation and research report

https://merriman.bluematrix.com/sellside/EmailDocViewer?encrypt=a58d2732-2e06-4c07-99a4-02731ef5146b&mime=pdf&co=Merriman&id=[e-mail]&source=mail

[umiak]

OPRX caught a bid :)

[baltimorebullet]

I'm cautiously excited about the vet thing but it rarely gets a mention.
Any thoughts?

[umiak]

Yep, and 3rd even better. The interesting thing about Alcon-Novartis
is they had opted out the program while they did an in depth study of the ROT they were getting from the program. OPRX came out smelling like roses.

[Stocks4John]

From the CC:

David Harrell: Dave, is that reasonable? Dave, can you comment on that, with the Alcon-Novartis? I don't want to ...


David Lester: Yes. Alcon-Novartis had been running right around that kind of a number. That's correct.


David Harrell: Yes, so I mean that's (the work estimate).


Harvey Poppel: And they were out of the game for three months?


David Harrell: Yes.


Harvey Poppel: Wow.


David Harrell: Actually, four months.


Harvey Poppel: Four months. And then when did that end?


David Harrell: They restored it in May program.


Harvey Poppel: OK. So there would be some impact that actually even the second quarter will be a little lighter than (it might otherwise be).


David Harrell: Right.

[umiak]

Needs volume, but next couple q's should be better based on Novartis and Allscripts being back to normal, the icing being any new biz. Hopefully the TDA thing gets resolved.

[Stocks4John]

I might have to call TDA and put in an order....ugggggg.

[umiak]

Could just be the low volume.

[umiak]

Thanks! Well done. Perhaps indirectly, I think this is wrong though:

The biggest risk remains management execution, as no one on the team has experience building a public company to uplist on a reputable exchange.

New CFO from CC:

Thanks, Dave. I just want to take a minute to say hi to everybody and say I'm really excited to join a growing and progressive organization like OPTIMIZERx. In terms of my background, I spent the last 18 years as a chief financial officer of a similar size public technology company. Prior to that, I had experienced as a CFO of a small private company and a divisional controller in a large public company. I started my career in public accounting, spent nine years at a local or a regional firm (here) in Detroit, Plante Moran. I do have a little experience in the healthcare industry. I'm in the board of the Detroit-based HMO, Total Health Care, which (has over) $300 million in revenue company. And so, I know my skill set; you know, I can help the company.

I also have, in terms of my educational background, I have both bachelors of business administration and masters of business administration from the University of Michigan. I'm a CPA. I have been a CPA since 1980; member of the AICPA and MACPA and all those sort of thing. So, that's a little bit about me and I look forward to helping the company.

[Stocks4John]

Here's his update since Q1 results:

http://moatology.com/tag/oprx/