Progressive Care Inc (RXMD)

[Jimmy Quick]

I think you mean the Dream Midam Ventures had to be a reputable investors relation firm is over. $RXMD / Progressive's future is bright here with increasing yearly revenues, profitable, uplist to OTCQB, expansion. The real news is below

Overview
During the six months ended June 30, 2017, the Company’s focus was to continue the growth and development of its pharmacy services, specifically health practice risk management and Medication therapy management (MTM). The Company has increased its attention to key PBM performance metric including adherence, brand to generic ratios, high risk medication, therapy gaps, safety, and retention. As a result of these efforts, PharmCo maintains a 5-Star Rating based on the ratings provided by various insurance carriers. Growth trends were due in large part to expanded marketing efforts, directed advertising, and word-of-mouth of PharmCo’s performance rating and the ability of the pharmacy to improve the performance ratings of the physicians it serves. The Company provides services to nearly 12,000 patients of diverse demographics across South Florida.

During the second quarter, Direct and Indirect Remuneration (DIR) Fees applied significant downward pressure on the Company’s profitability. DIR Fees are PBM clawbacks of reimbursements based on factors that vary from plan to plan. These fees lack transparency and are extremely difficult to predict and accrue. DIR fees are often applied retroactively, which has caused the fees in the second quarter to be nearly 300% higher than the first quarter. The Company has already shifted pharmacy policy to take into account anticipated DIR clawbacks and we expect to limit the losses incurred by DIR through the remainder of the year. Part of the mitigation policy includes our focus on performance as some PBMs may reduce or return DIR Fees based on the performance of the pharmacy within their network. As of May 2017, the Company’s performance ranks in the 90th percentile based on a 6 month average between comparative rankings in all PBM networks.

In May 2017, the Company settled an employment claim that had remained inactive for over 4 years. The plaintiff unexpectedly filed a motion for trial in April, and the parties settled on the claim in May as the case was tried in court. As a loss from the claim was neither probable nor estimable in prior periods, the Company did not provide a contingent liability for the claim in its prior period financial statements. The legal fees, settlement amount, and associated costs are non-recurring and approximately $105,000 was charged to operations in the second quarter 2017.

Over the course of the second quarter, the Company has worked diligently on a strategy for a change in the market tier listing for the Company’s common stock as well as evaluating numerous M & A opportunities. While we believe we have made progress on a number of these fronts, conversations are ongoing about suitable valuations, transaction structures, timelines, and rules and regulations as they apply to both Progressive Care and PharmCo, LLC. We are also exploring real estate opportunities that would accommodate the rapid growth of the Pharmacy. Through the second half of the year, we expect future growth to be driven by continued expansion into new market territories, concentrated efforts toward developing our compliance and adherence services provided to medical providers, and enhancement of technological opportunities which boost loyalty and customer satisfaction. We believe that our expanding breadth of services and our growing penetration with new customers will help us achieve sustainable revenue growth in the future. Additionally, profitability and cash flow will be positively impacted by the elimination of non-recurring expenses and reductions in PBM fees associated with maintained and improved adherence and compliance performance rating.
Second Quarter 2017 Key Highlights
- Revenue of $5.1 million, an increase of 15% or $656,000 from Q2 2016
- Total prescriptions dispensed of 108,000 for the six months ended June 30, 2017, an increase of 5%
- Gross margin of 28% for the six month period versus 25% for the same period in 2016
- Performance rating of 5 Stars, which ranks in the 90th percentile of all pharmacies in the 3 measurement
categories
- Expansion into Palm Beach County