Praxsyn Corp (PXYN)

[Rhenarium]

Not ones bringing in the kind of revenue that PXYN is. No.

Please. If PXYN does $50M in WC gross billings in Q4 they will factor for 18% or less. That's $9M, or which 13% / $6.5M (or 13.5% / $6.75M , I can't recall) goes to the sales referral agent.

That means that $200M in annual WC gross billings provides between $9M and $10M in net revenue. That MIGHT - or might not - cover PXYN's operating expenses. It certainly doesn't leave any room for profits.

A year ago PXYN estimated that 54% of WC gross billings was recoverable. As of Q3 it reduced that estimate to 30%. $50M in WC gross billings is currently worth less than $28M in WC gross billings from a year ago.

This compression is likely ongoing as insurance companies will likely continue to reduce their reimbursement levels for insanely-overpriced compounded medications - or stop covering them altogether.

There is a spiral here, and its two primary attributes are "downward" and "death".