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Further insider buying on SPIN
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9312375
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
Insider buying on SPIN
The CEO purchases 25,000 at 51c
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9305701
OPRX CC and transcipt here
www.optimizerxcorp.com/investors/audio.php
This is a great opportunity.
CC and transcipt here
www.optimizerxcorp.com/investors/audio.php
This is a great opportunity.
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.
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.
For short term focused trader no. For long term investors yes.
Though there is nothing wrong with waiting until EPS rises first.
Based on their comments, I think the next quarter will be breakeven, maybe slightly profitable.
I wonder how quickly they will get, and to what extent they will, benefit from the Halo. - it's a bit of an unknown
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.
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.
It'll take some more time, but all signs I see point to them strengthening their business model and making sensible business decisions. It depends on whether you believe them or not.
I truly think they have learned from their "snowball" days.
You still get free samples, but you get them from a coupon printed by Sample MD given to you directly to you by the doctor which you redeem at the pharmacy. Free samples are still here.
Doctors and drug companies will prefer this method.
Pharma reps will be drastically cut as part of the marketing budget once this gets into gear
I have a large position in OPRX - averaged (luckily for me) at $1.02.
The story will emerge from the shadows over the next few quarters as Sample MD starts to log more usage and is correspondingly paid.
To get people started, here are a few research sources.
http://seekingalpha.com/article/913501-optimizerx-a-disruptive-force-in-e-prescription-marketing
http://files.samplemd.com/OPRX_IR_Presentation_Q1_2012_02162012.pdf
More articles here
http://seekingalpha.com/symbol/oprx.ob?source=search_general&s=oprx.ob
Revenue depends on two things.
1. How many users OPRX has. - the user base is rapidly growing through the addition of Allscripts pro becoming opt-out next quarter as well as Physician's Desk Reference (user base of 400,000)
2. How often each user prints the coupons (3 dollars net to OPRX per print)
Finally, read the recent 10k and the last few PRs.
Page 21 of the proxy give the company's bonus based EBITDA targets
http://www.sec.gov/Archives/edgar/data/1011432/000144586613000423/auxposam04122013.htm
EBITDA target for FY 2013 of $2 million.
EBITDA target for FY 2014 of $6.3 million.
EBITDA target for FY 2015 of $9.2 million.
They have an experienced board. This is a seriously professional company.
I have a large position in AUXo.
I think it has the potential to be a 3 -5 bagger over the next two years.
It is a well managed company that is growing rapidly and has a host of competitive advantage.
Last quarter was slightly cash flow positive. If positive earnings are posted on the income statement over the next few quarters - and they should because costs to contracts are front-loaded and more profitable as they mature - expect this stock to rise.
Further details on China numbers
Last year (for April) they did.
70 cases 1,109 veneers 3 510 425 rmb
This year (for April) they did 89 cases 1,320 veneers 4 597 307 rmb
This is all same store sales growth (no additional stores)
In regard to the 750,000 USD below, this comes to roughly 75,000 net income from equity investments on REMI's income statement. 75,000 *12 = 900,000 USD per year (assuming no further stores and no further same stores growth)
20 million shares out = 5c EPS = PE of 3 on a growth stock
If the debt issue can be handled, this stock will be very undervalued. Waiting for updates...
China is booming (predictably)
http://www.marketwatch.com/story/remedent-announces-glamsmile-chinas-record-growth-2013-05-06
As a reminder, EBITDA margins are around 50%, minus 20% tax, at REMI has a 29 share of the net income remaining. (29% share of the business)
The risk with this stock is renegotiating the Excelsior debt to avoid possible dilution (which would be disastrous at these levels) and making a small profit on the non-China business to pay down remaining debt.
I am confident the debt can be renegotiated because Excelsior is described as a strategic lender by the CEO.
I would suggest anyone looking at it to wait for the CC/10q for mroe details.
If the above is successful, the company is very very undervalued at these prices.
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
Hi Gurupup, I too believe we will see good things coming. This stock had a lot of disappointed investors who lost money on it. I think it is currently in the dog-box until 10qs prove management's words. Hence the very skeptical attitude. Despite what is said, I think most are watching SPIN closely.
kezzek - For the record, I am long SPIN and confident of their ability to improve revenues and earnings quite quickly - just so you know.
Art, Since SPIN has already sold one Halo unit to a center in Minnesota, they must have agreed on the licensing terms with this center after one year of use is complete. Any rough idea, in number terms, what the licensing dollar amount will be?
I was going off their investor presentation under Benefit to Physicians
-"Broadens patient base and business with SPIN procedures."
On reflection, I am not quite sure what that means.
Yes, you are right, SPIN gets involved after the clinic has.
SPIN brings them more cases though.
Whether or not they are desperate, they are signing on surgeons.Right?
Why is the revenue going back up to 1 million for the next quarter being ignored? This is already known by the company and stated in their last CC.
I am betting they have learned their lessons and we will see nice growth from here. It won't be as big as what was hoped b4, but it will be more steady.
With the Quad Halo being an extra possibility.(but not part of why I am still in)
It seems to me they have learned their lessons.
We'll see.
The unknown is to what extent they can make money off sales and licensing of the Quad.
Thanks cleverox and for your earlier thoughts on the Quad margins you sent me
Here is a link to the CC transcript. That was quick! Great work Art.
http://seekingalpha.com/article/1313431-spine-pain-management-s-ceo-discusses-q4-2012-results-earnings-call-transcript?source=email_rt_article_readmore
This is encouraging. Perhaps from poor to average results for 1q?
"These issues were aggressively and successfully addressed along with ancillary new products and services added which will be evidenced by first quarter 2013 results."
I just wrote to them and asked for the replay. I am assuming they are going to put it up as promised.
Art, Any guess at the gross margin on the sale of the Halo?
Let's see how many they can sell.
More significantly, I want ot see if the Halo is successful is bringing down collection cycle times
Yeah, I meant over the longer term. You are right 5 dollars seems quite viable.
I am disappointed with the numbers. But, unlike with JB, I think KR lays out the issues honestly and clearly.
What was cardboard revenue as part of the 320k figure you are giving?
I should also add there is no viable competition in this space.
Physician's Interactive's product is a latecomer, has very few drugs in the system, and has probably infringed OPRX's patent.
The barriers to entry in this space are significant because of the regulatory hurdles that must be overcome in each state per the health care laws for the distribution of samples and each patients particular insurance conditions. In addition, the software itself was under development for years. it is no easy build. It is highly doubtful anyone could displace OPRX after their big head start and relationships they have which are sewing up this space for years to come.
Here is the 10k opening remarks. Speaks for itself.
Multiple lucrative relationships, more drugs coming online, more doctors using he service. This stock, IMO, is going to go considerably higher in the coming quarters.
Revenues are a function of -
1. how many doctors use the service (this is expanding rapidly and will likely explode wit the expected onboarding of Epic and PDR
2. how many drugs in the system and how popular they are. Again, these will explode. The more drugs in the system, the more the pharmaceutical companies can keep patients on their drugs, the more money they make. It is a win-win
3. how many times the doctors print he coupons per day. This is merely a matter of getting into the habit. It is far easier for the doctor to print a coupon for a free sample than keep inventories of physical samples at the office and have to deal with drug salemen
"The 2012 year showed continued growth in our company with an 85% increase in revenues of $2,048,699 in 2012, as compared with our prior year. Our net loss also improved from $1,453,977 in 2011 to $364,345 in 2012.
For the fourth quarter of 2012,we more than doubled growth in revenues - from $325,910 in 2011 to $750,719 in 2012. Our bottom line significantly improved with net income of $118,993 in the fourth quarter of 2012, as compared with a net loss of $93,143 in the fourth quarter of 2011.
Our recent success is largely attributable to leveraging our market position to further acquire more brands and electronic health platforms to integrate eCoupon support within participating physician’s electronic prescribing workflow.
We stuck out this year with a solid message to the pharmaceutical industry that was threefold:
1) SampleMD can deliver promotional scale to physicians at point of prescription through interoperability with multiple disparate electronic health platforms;
2) Electronic health platforms (EMRs, eRx, Patient Portals) are the new digital frontier to reaching physicians and patients as opposed to external web sites that have been traditionally the focus of their non-rep marketing; and
3) The ability of our SampleMD solution to integrate within multiple application platforms while adhering to compliance and regulatory requirements by defining and utilizing industry standards was a powerful message to the industry.
Throughout 2012, we promoted brand support programs, including eVouchers, eCopay Coupons and Patient Education, from 20 major pharmaceutical and medical manufacturers. We have also seen our client base increase with new programs initiated with Eli Lilly, Roche Diagnostics, Pfizer, Daiichi Sankyo, Roche Pharmaceutical, Alcon Laboratories and many others. The industry acknowledged SampleMD leadership in the marketplace as we established new partnerships with DrFirst, and new working relationships with Adheris and Krames Staywell.
Additionally, we launched SampleMD’s unique “dashboard reporting” portal to our clients which enables our clients and platform partners to monitor their programs in real time and evaluate performance of individual channels and overall program effectiveness.
Our SampleMD solution also went live in the Allscripts PRO EMR solution. However, automated access to the additional 25,000 Allscripts PRO based clinicians has been limited due to doctors having to actively turn the eCoupon feature on. However, we are working with Allscripts senior management to internally remedy this obstacle because of the clear benefits to the healthcare provider, its patients and the payors looking to improve overall healthcare outcomes. We anticipate Allscripts PRO moving to an “opt-out” feature to turn the eCoupon tool off as opposed to turning it on, thus automating access to these providers in the second quarter of 2013.
We have begun the integration for SampleMD into HealthTronics, the largest Urology EMR in the country, which serves over 2,200 doctors. 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 hospital 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.
Additionally, SampleMD has entered into a partnership and licensing agreement with LDM Group, a leading provider of patient support. In addition to settling the legal issues between our companies and giving us full licensing of their patents, LDM allows us to enter into a major new promotional channel: promotion at point of pharmacy. We will be LDMs exclusive eCoupon partner to offer both savings and educational support right when a patient receives their prescription fill.
In the fourth quarter of 2012, we were awarded a patent for our innovative SampleMD solution (US Patent No. 8,341,015). This award highlighted our continued research and development efforts. The awarded claims cover our ability to electronically process, display and distribute eligible prescription savings on the medications and therapies healthcare providers wish to prescribe for their patients. We have also recently submitted and will be preparing additional filings to protect our intellectual property on forthcoming solutions that will further assist and support physicians, pharmacists and patients.
In addition, we have hired 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. We also used the firm to file a patent infringement lawsuit against Physicians Interactive. Management believes the current and expanding IP will allow us to continue being the leader in this rapidly growing space.
Adding strength to our organization, we have re-aligned our management team and added Mr. Shad Stastney as the new Chairman and Chief Executive Officer. Mr. Stastney, 43, has served as an active member of our board since 2009 and has provided us with keen insights and guidance. Mr. Stastney is a founding partner of Vicis Capital LLC, which managed assets that peaked at $5 billion dollars. He graduated from the University of North Dakota in 1990 with a B.A. in Political Theory and History, and from Yale Law School in 1994 with a J.D. focusing on corporate and tax law.
From 1994 to 1997, he worked as an associate at Cravath, Swaine and Moore in New York, where he worked in the tax and corporate group, focusing on derivatives. In 1997, he joined CSFB's then-combined convertible/equity derivative origination desk. From 1998 through 2001, he worked in CSFB's corporate equity derivatives origination group, eventually becoming a Director and Head of the Hedging and Monetization Group, a joint venture between derivatives and equity capital markets. In 2001, he jointly founded Vicis Capital Management, LP, and in 2004, he jointly founded Vicis Capital LLC.
Mr. Harrell became Vice-Chairman and will be responsible for developing corporate strategy and product innovation. David Lester, will continue to manage company operations as Chief Operating Officer.
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 and setting the standards within this new frontier of digital EMR solution marketing for patient care."
WTF?? - JBI presenting at the 21st Annual North American Waste-to-Energy Conference.
I thought this company was a scam! I am confused.
Someone please enlighten me. I'm a bit slow on the uptake.
Yes, be careful about buying into these false rallies.
Often they are attempts by large position stuckholders to generate buying interest so they can sell their position.
It was settled in March 2012.
Didn't the last PR mentioned accelerating cash collections?
Hi Art,
Nice to hear from about SPIN. Thanks very much for the posts.
Was the lady n the first part of the CC from Grannus? I took an instant dislike to her cocky tone of voice - lol