OptimizeRx Corporation (OPRX)

[MrT11]

I agree. This is a long term hold.

[FrankLind]

Q4 earnings preliminary earnings.

http://www.schwab.wallst.com/research/public/news/viewStory?YYY20_mOoh8sgX6mncmffUKh4YofBmMo9PYMJXLc2wyz9yHF8UOfeuL2zMXtf7BsGiYYQKVQNB3CzTRddsGsiprSDs3TQ4XbjWayzcTWUyuUiZ+FI=&a

The Company is forecasting fourth quarter 2013 revenue of approximately $1.884 million, bringing revenue for 2013 to approximately $5.030 Million -- an increase of 245% over 2012, when revenue was $2,048,699 million.

The Company's Chairman and CEO, Mr. David Harrell, stated, "We are very excited for the continued growth we're experiencing in all facets of our business, evidenced by another record quarter. We anticipate continued growth in 2014 and beyond as we expand our electronic pipeline to deliver savings and product support to hundreds of thousands of doctors -- right at point of care."

[FrankLind]

I think the increase in share price increases the chance Vicis will be taken out sooner rather than later.

There are couple more catalysts for share price appreciation before the end of March - those being the release of January and/or February numbers as well as any additional revenue from the commencement of consulting contracts.

Fingers crossed.

[solarity]

Thanks so much for posting that link. If you listen to the entire presentation you have to believe that OPRX is going to dominate it's space. Share price is ridiculously low given the prospects for this gem.

[FrankLind]

Almost 40% sequential revenue growth just announced
q3 - 1.37 million
this quarter announced at Needham growth conference - 1.88 million

This is 150% YoY growth.
Allscripts and NextGen aren't even online yet.

http://noble.mediasite.com/mediasite/Play/24fcc7c1d0834f22a3a3aebd32758d4b1d

[FrankLind]

I have no idea about the short term.
I interpret the new deal to mean they are very close to something being finalized.
If it is, we'll go over 2 dollars very easily and very quickly.

[Justin42]

Thanks, that helps a lot! As a follow up question, what do you think the new deal with Vicis means for shareholders? Do we have a chance of breaking through $2 for good now?

http://markets.financialcontent.com/precisionir/news/read?GUID=26040677&Symbol=OPRX

[FrankLind]

Vicis funded the company in the early years.
They own some common stock and a big portion of unexercised warrants.
They decided to wind down their fund a year or so back.
One of the founders of Visis, Stastney, came in to head OPRX and oversee the buying out of Vicis's stake in OPRX. It has not happened yet because OPRX founders have not achieved a high enough stock price to do the deal. They want minimal dilution.

The proposed deal was for 9 million for all preferred shares, options and warrants.
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9014921
But this may be a little flexible.

If Vicis is bought out, this will greatly reduce the diluted share count (which stands at about 40 millon) - possibly coming down to about 20 million or less.
The two most probable ways to do this are either a strategic partner provides funding to OPRX in return for a stake in the business or access to OPRX's data, or increasing earnings drive the stock price higher, in which case OPRX will sell shares to raise money without a strategic partnet, but then buy back Vicis's stake at a much lower rate. Say selling shares for 3 dollars per share and buying back Vicis for 1 dollar per share. Both scenarios need a higher stock price.

A fly in the ointment occurred a few months back. Stastney was ordered to pay a fine to the SEC for previous wrongdoings while he was running his fund. This had nothing to do with OPRX at all. He resigned as CEO of OPRX (actually would have been pushed). He has stayed on to help to do the deal in a consultancy role. I don't like it, but it is entirely necessary.

The business of the company has not been affected at all. Stastney had little to do with the day to day operations. I expect the agreement will be extended because Stastney has to return the money to his fund holders and with SEC on his ass, he won't try anything tricky, like trying to keep the Vicis stake (because OPRX clearly has huge potential). I expect a lot of people are waiting until this somewhat murky situation is cleared up.

[Justin42]

Frank, you seem to know a lot about OPRX and their relationship to Vicis, but I don't really understand what's going on there. Could you explain?

Thanks!

[MrT11]

I agree when vicis is out of the way i will buy hand over fist.
Company is in the high growth mode.

[Frozen in time]

...and soon this will be a great company. It is surprising how few people see what is about to happen with this gem in the making.

[FrankLind]

Wait until there is a deal with Vicis to buy out their portion of the outstanding shares and then buy with both hands.
This is the main factor holding the stock back - imo

[MrT11]

I have to hand it to you Frank, this is a great stock. Wish i would have bought more.

[FrankLind]

Very encouraging CC

Transcript here http://seekingalpha.com/article/1852061-optimizerxs-ceo-discusses-q3-2013-results-earnings-call-transcript?part=single

[esteem]

Doubled my position. Easy $$

[FrankLind]

240% Yoy growth in revenues.
Roughly 22% sequential growth.

The train keep rolling.

The Company is forecasting third quarter 2013 revenue of approximately $1.370 million, bringing revenue for the nine months of 2013 to approximately $3.142 million -- an increase of 240% over same nine month period in 2012, when revenue was $1.298 million.

The revenues were driven primarily by the Company's SampleMD solution, which generated approximately 324,756 new ePrescriptions with co-pay coupons or free sample vouchers during the third quarter, helping patients more affordably start and stay on their prescribed medications. That is a substantial increase from the 265,628 distributions in Q2 2013, and more than tripled from the 90,135 distributions in Q3 2012.

The Company's Chairman, Mr. David Harrell, stated, "We are very excited for the continued growth we're experiencing in all facets of our business, evidenced by another record quarter. We anticipate continued growth in 2014 and beyond as we expand our electronic pipeline to deliver savings and product support to hundreds of thousands of doctors -- right at point of care."

http://www.marketwatch.com/story/optimizerx-announces-record-preliminary-2013-third-quarter-results-and-update-2013-10-08?reflink=MW_news_stmp

[MrT11]

Thank you

[FrankLind]

If it is bought out, it will no longer be in the outstanding share count.

[MrT11]

So if this potion is bought out is it still in the out standing shares?
Or will it be retired? If i read it correctly a lot of it can be sold after 1/1/2014

[FrankLind]

The diluted portion is virtually all a combination of preferred and warrants from Vicis. (the initial funders of the company)

They are attempting to get this portion bought out by a strategic partner(s), but it hasn't happened yet.

Longer term, and or even in the shorter term, I think they will get this done because Vicis investors need their money back from their initial investment (they are winding down their fund). For them, it is just a question of getting the right price.

Shad Stastney has stayed on as a consultant to get the deal done.

Hope that helps.

[MrT11]

Hello Frank,
i have been watching this for some time and i hope you can help me.
On the 10Q the authorized shares are 500,000,000 the basic issued and outstanding is 14,238,870
but the diluted is 33,608,304. My question is with 20 million stock warrants is that what makes up the difference? if so when do the extra shares come into play? will it be more than the diluted shares or is that in the total? Thanks in advance.

[FrankLind]

Analyst article on OPRX discussing departure of CEO.

I agree with him.

http://seekingalpha.com/article/1721432-optimizerx-ceo-resignation-a-non-event

[FrankLind]

I think there are near term headwinds due to the uncertainty as to what is happening with the Vicis stake.

While Stasney's continued role as a consultant to oversee financing points to things being okay, it would be more encouraging that they announced earlier rather than later that an extension will be granted for the purchase option of the Vicis stake if it not done by Dec 31.

[FrankLind]

Yesterday's CC transcript.

http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9525813

Very, very positive-imo.
The EHR product is a good sign this company is going to be integral to the plans of all the largest pharmaceutical companies in the world.

[esteem]

Going back to $2. OPRX already said they expect another record qtr so say goodbye to sub $2's after earnings report is released. Then we have the announcement of a new CEO which will bump us up even higher.

Like taking candy from a baby

Zacks has a target of $3.50

[4retire]

I agree. The core business strategy and execution is sound. I am ready to change brokers as I told him I wanted to buy 50,000 more shares this morning when it was at $.85. He balked and told me I already had enough and I got busy and didn't look at it until this afternoon...when it was at $1.13. I could have gained $14,000 by insisting on him pulling the trigger but wasn't forceful enough. Lost an opportunity. I'm going to be a little more forceful in my discussion with him in the morning.

[esteem]

Business, and plans for strategic partnerships will still be intact. You should all look at this as a great opportunity to add more. "Buy when others sell."

If things were worse than we all expect the stock would have been beaten down on HIGH volume. Its a thinly traded stock with many weak hands and/or stop losses set.

[Frozen in time]

Thank you. I will jump on the call.

[FrankLind]

CC today. The calls of some of us were listened to.

The Company will be hosting a conference call at 12:00 PM EST on Wednesday, September 25, 2013 to discuss the departure of Mr. Stastney from the Company. The conference call number is [phone] and the conference identification number is 71207950.

I am very interested to see what comes out of this.

[Frozen in time]

Frank, Thanks for your comments. This company is still a great long play.

[4retire]

It's a shame that this happened. I agree that their core business appears to be doing very well. One good thing about this (tongue in cheek) is that there is some volume. This is a very thinly traded stock, at this time. What's the old Hollywood statement......"any publicity is good publicity?"

[FrankLind]

I don't think this will affect their core business. And the actions of the ex-CEO while running has nothing his fund to do with OPRX at all

But the plan to buy back the Vicis shares has been harmed. This is what the market doesn't like. There was an expectation they would be bought out at the end of the year, but this is not going to happen.

What will help the company is further increases in revenue and earnings. This will boost the share price and allow Vicis to be taken out on better terms.

[Frozen in time]

I'll answer my own question.

http://www.forbes.com/sites/nathanvardi/2013/09/18/sec-goes-after-founder-of-formerly-5-billion-hedge-fund/

[Frozen in time]

Can anyone see a reason why this stock is still so low?

[FrankLind]

CC transcript here http://seekingalpha.com/article/1635532-optimizerxs-ceo-discusses-q2-2013-results-earnings-call-transcript?part=single

[FrankLind]

64% sequential revenue growth - 669000 to 1,100,000
50% sequential growth in distributions - 177000 to 265 628

Net income of 354000 on 1.1 million in revenue - validates operating leverage as revenue rose costs did not. (i.e., costs are 700 to 750,000 per quarter regardless of revenue - which means revenue increases have huge effect on net income)

Specialist urology group with high volume drugs to be added this quarter.

And the big one... through PDR relationship approximately 100,000 users to be added and begin monetization by end of year.

Simple math to illustate significance - at 125000 users click on coupon once per week (which is way too conservative) = 375000 revenue per week = 1.5 million per month = 4.5 million per quarter

Click on once per day.....

http://ih.advfn.com/p.php?pid=nmona&article=58466015

[FrankLind]

Latest Zacks report

http://scr.zacks.com/files/doc_coverage/Med-Tech%20-%20Brian%20Marckx/OPRX/May%2020%202013_OPRX_Marckx_v001_z3hg46.pdf

[FrankLind]

Link to latest CC is incorrect. That was the CC from Q3 last year.

Transcript of latest one here
http://precisionir.api.edgar-online.com/EFX_dll/EdgarPro.dll?FetchFilingHTML1?SessionID=cBx96qOP-ASU9xS&ID=9304097#EX99_1_HTM

Size of PDR
"So PDR reaches an additional 100,000 doctors. But I will say that they reach them at different points within both the ePrescribing process as well as the EHR."

Due to recent integration with PDR
" And there’s a very, very active discussions regarding new EHRs including some very large ones. So we’re very excited about that."

"That being said though, they are going to go to their existing and collectively we are in discussions with current EHRs to automate our system within that too that will automate the eCoupons. And we see that happening in some meaningful use beginning in third quarter and ramping up in the fourth quarter."

[FrankLind]

Compilation of research links.

Seeking Alpha articles

http://seekingalpha.com/article/913501-optimizerx-a-disruptive-force-in-e-prescription-marketing

http://seekingalpha.com/article/1454611-optimizerx-s-samplemd-revolutionizing-prescription-drug-sampling

http://seekingalpha.com/article/302783-why-we-re-bullish-on-optimizerx

Company presentation
http://files.samplemd.com/OPRX_IR_40213FINAL.pdf

Latest CC
http://www.optimizerxcorp.com/investors/audio.php

[FrankLind]

Another high level partnership inked.

PDR is the leading distributor of FDA-approved patient drug safety and support services for electronic health record (EHR) and e-prescribing (e-Rx) platforms.

I have spoken to a fund manager who owns shares OPRX. He told me PDR has access to 400,000 physicians. This is a ridiculously large amount.

[FrankLind]

Latest report from Zacks analyst.

http://seekingalpha.com/article/1454611-optimizerx-s-samplemd-revolutionizing-prescription-drug-sampling

[phil85]

$5 Price Target in this article from Seeking Alpha.

http://seekingalpha.com/article/296409-initiating-coverage-of-optimizerx-corp-at-outperform-with-a-5-price-target

[FrankLind]

Undiscovered, no strong competition, massive operating leverage, great macro trend, high level experienced CEO, massive revenue potential, recurring revenue model, very low capital costs, patents...

It is also likely later this year or early next year the share count will be halved from 40 million to 20 million
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9014921

[tbone58x]

Frank, I think they may be listening to you. The stock is moving up sharply. Thanks for posting the info you have. This one looks very promising!

[FrankLind]

CC and transcipt here

www.optimizerxcorp.com/investors/audio.php

One day I'll stop talking to myself on this board - LOL

All the right moves are being made and partnerships with the largest health record and health education (Physicians Desk Reference, Adheris, Krames Staywell) companies in the US

Revenue = number of doctors, number of drugs, popularity of drugs, frequency of use.

I personally think this a great risk/reward opportunity.

[FrankLind]

CC and transcipt here

www.optimizerxcorp.com/investors/audio.php

One day I'll stop talking to myself on this board - LOL

All the right moves are being made and partnerships with the largest health record and health education (Physicians Desk Reference, Adheris, Krames Staywell) companies in the US

Revenue = number of doctors, number of drugs, popularity of drugs, frequency of use.

I personally think this a great risk/reward opportunity.

[FrankLind]

Relevant management discussion from 10q today.

Overview

We more than doubled our revenues from $329,403 in Q1 2012 to $669,290 in Q1 2013. Our bottom line improved with net loss of $104,826 in Q1 2013, as compared with a net loss of $300,734 in Q1 2012. As net income less all non-cash expenses was $2,963 in Q1 2013, the total loss for the period was due in large part to the $150,000 payment to Allscripts for revenue share and final development payout.

In Q1 2013, SampleMD generated 177,000 new ePrescriptions with Co-Pay Coupons of Free Sample Voucher to help patients more affordably start and stay on their prescribed medications. In March of 2013 alone we distributed over 85,000 patient coupons. We look forward to increasing our ability to generate more prescriptions for our pharmaceutical clients, increasing our revenue contributions to our ePrescribing and EHR partners, and improving adherence and outcomes for health care providers and their patients.

Kicking off the new year, we have continued to drive our two primary messages to the pharmaceutical industry:
1) SampleMD has the largest capacity to deliver targeted promotional and incentive messaging to physicians at point of prescription through interoperability with multiple disparate electronic health platforms; and

2) Electronic health platforms (EMRs, eRx, Patient Portals) are the most cost-effective way to reach physicians and patients, as opposed to external web sites that have been traditionally the focus of their non-rep marketing, and should therefore be an increasing focus for all pharmaceutical marketing dollars.

In Q1 2013, we renewed and launched many brand support programs, including eVouchers, eCopay Coupons and Patient Education, from all of the major pharmaceutical and medical manufacturers currently engaged within the SampleMD promotional program. We launched new programs with Eli Lilly, Roche Diagnostics, Pfizer, Daiichi Sankyo, Alcon Laboratories, and many others. The industry continues to acknowledge SampleMD’s leadership in the marketplace through new program awards and new inquiries for partnerships.

We have also continued the integration for SampleMD into HealthTronics, the largest Urology EMR in the country, which serves over 2,200 doctors and is targeted to launch in Q2 2013. This specialty network is very significant to some of our current coupons for brands like Cialis and Vesicare, as well as positioning us to acquire other new brands and manufacturers who seek to reach these types of specialists.

SampleMD is also in direct discussion with some of the largest remaining EMRs and ePrescribing platforms, along with the largest hospitals and health
systems.

To further escalate our value and growth, we have formalized a partnership agreement with one of the premier and most respective brands in the industry: PDR, also known and Physicians Desk Reference. This allows both companies to leverage synergistic strengths to offer more solutions and reach to the pharmaceutical industry, as well as more value to the electronic health records (EMR/EHR) platforms. SampleMD will be PDR’s eCoupon and Rep invite platform, and PDR will enable expansion of SampleMD’s reach to additional EMRs and directly to physicians' offices via a PDR-branded downloadable desktop application of the SampleMD solution.
As previously noted, in Q4 2012, we were awarded a patent for our innovative SampleMD solution (US Patent No. 8,341,015). We continue to utilize Harness, Dickey & Pierce, a nationally ranked IP firm, to further expand and protect our intellectual property.

Through them, we have filed two additional patents on our technology, and we will also use them, along with corporate counsel, to aggressively protect our IP.

Management believes our current IP pipline, as well as our ongoing focus on expanding and protecting our IP, will allow us to continue being the leader in this rapidly growing space.
In summary, we remain committed to working with top organizations to provided better affordability and access to healthcare for the patients we serve. To achieve this, we will continue to work with leading providers in partnering to provide simple to use solutions.

As compliance and regulatory requirements (i.e. meaningful use) continue to surround healthcare providers, OptimizeRx continues through its partnerships and internal R&D to become the “HUB” for providing access to these ease-of-use solutions.

With these continued efforts, we believe that SampleMD continues to be regarded as the innovative industry leader, setting the standards within this new frontier of digital EMR solution marketing for patient care.

[FrankLind]

OPRX's revenue more than doubled from last year.

The important metric in the 10q is the distribution revenue is in March 85,000 distributed (times $3 net per coupon times 3 months = $765,000 quarterly)

Break-even point 750,000 in revenue. Cost do NOT rise with revenue.
Huge operating leverage here.

Once installed, OPRX's software revenue is recurring and growing.

Thus, there are undoubtedly cash flow positive now because they have added more drugs and continue to onboard health systems.

[FrankLind]

The macro trends are in favor of OPRX.
e-Prescribing in Growth Mode:
http://www.healthcareitnews.com/news/eprescribing-nears-halfway-mark

Drug salemens are being laid off because of their inadequte ROI
http://www.reuters.com/article/2013/04/12/lilly-jobcuts-idUSL3N0CZ0L320130412?feedType=RSS&feedName=rbssHealthcareNews&rpc=43

And finally
http://community.advanceweb.com/blogs/hi_1/archive/2013/04/30/2013-pharmehr-summit-talks-ehr-status-and-future-opportunities.aspx

[FrankLind]

Yeah, I meant over the longer term. You are right 5 dollars seems quite viable.