A listing of Ongoing Business Operations - Or Are These Expansion Initiatives????
On November 8, 2019, the Company entered into that certain Amendment to Stock Purchase Agreement (the “Stock Purchase Agreement”) with five investors (each individually a “Seller” and collectively the “Sellers”), pursuant to which the Company, has agreed to amend the terms which includes an adjusted purchase price of $1,900,000 (the “Purchase Price”), for 100% of the issued and outstanding shares of common stock of Family Physicians Rx, Inc., a Florida corporation d/b/a Five Star, RX (“Family Physicians”). The closing of the Amendment to the Stock Purchase Agreement shall occur on or before November 15, 2019. Under the Amended terms, the adjusted Purchase Price shall be paid to Sellers immediately upon closing. The Company, released from escrow $1,000,000 on June 1, 2019, leaving a remainder of $900,000 to be released from escrow prior to November 15, 2019. The remaining $400,000 held in escrow is to be returned to Iliad Research and Trading, reducing the balance on the note without pre-payment penalty.
A significant aspect of our business plan is the development and launching of new and innovative technology solutions to deliver personalized patient-centered care. We completed a significant component of that plan through the launch of our ClearMetrX subsidiary, the Company’s first wholly-owned data management company with services designed to support health care organizations across the country. We believe in the power of Artificial Intelligence (AI) to improve preventive healthcare by helping physicians make informed decisions in the medication therapy management process. Through ClearMetrX, the Company has increased its third-party administrative and data management fees to over $700,000 in 2020. These fees have gross margins significantly greater than those generated from our pharmacy operations. The new subsidiary focuses on providing insights, data security, and technological development. The Company has transitioned data service customers from the pharmacies to the ClearMetrX platform to better scale the products and improve the capabilities of existing analytics options.
The core products of ClearMetrX include data management and Third Party Administration (TPA) services for 340B covered entities, Pharmacy Analytics, and programs to manage HEDIS Quality Measures such as Medication Adherence. These offerings cater to the glaring need of frontline providers to understand best practices, patient behaviors, care management processes, and the financial mechanisms behind these decisions. The Company aims not just to provide data access, but also actionable insights that providers and support organizations can use to improve their practice and patient care.
Another important aspect of our business plan was the development and provision of health IT, HIPAA-compliant software development, HL7 integrations, and virtual healthcare services on a business-to-business (B2B) basis, delivering these services directly to consumers and through channel partners. We planned to do this through a series of major acquisitions, beginning with the entry into a letter of intent with MyApps Corp., a leading developer of healthcare software. Although the parties ultimately determined not to complete the acquisition, we engaged MyApps Corp. to accelerate development of software platforms for ClearMetrX.
In September 2020, we further enhanced our industry-leading contactless delivery service by entering into a new partnership with DeliverSTAT, a provider of an all-in-one pharmacy delivery logistics solution. The new platform will allow PharmcoRx to compete and possibly partner in the future with pharmacy delivery apps such as Capsule, PillPack, NimbleRx and UberHealth in terms of functionality and technology. The platform connects directly with the pharmacy to help manage the prescription delivery process from end to end, reducing overhead, simplifying operations, and improving both patient and physician satisfaction.
During the third quarter 2020, the Company launched an aggressive expansion of its COVID-19 testing service registered through the FDA under its Emergency Use Authorization (“EUA”) guidelines, featuring Polymerase Chain Reaction (“PCR”) and Antigen testing systems that produces rapid detection of the SARS-CoV-2 virus with market-leading accuracy in 15 to 45 minutes. The systems we use for Rapid Detection of the SARS-CoV-2 virus is a molecular test using a lab technique called PCR, an antigen-based testing system designed to detect proteins from the virus that causes COVID-19. The Company provides these new testing systems to patients at its North Miami Beach location and provides Antigen testing at Palm Springs and Orlando pharmacies. To date, the Company has successfully tested over 5,000 patients and built a reputation as a preferred provider for in-patient and out-patient COVID-19 Rapid Testing solution.
By the end of the third quarter 2020, new contractual relationships with not-for-profit clinics and health care institutions began to come online and drive revenue growth. The collection of the buying power of all of our locations (North Miami Beach, Davie, Palm Springs, and Orlando) allowed us to negotiate more favorable discounts and purchasing terms.
You may recall that just over a year ago, we closed 2019 on a positive note, when our administrative division moved to our flagship building in Hallandale Beach, Florida. Our plan at that time was to convert this facility into a modern state of the art fulfillment facility and operational center. In June 2020, we began the work of consolidating our North Miami Beach and Davie locations into a single large-scale pharmacy operation. We entered into a construction contract with a local contractor and construction activities began in the summer. In December 2020, the Company completed its move into its new 11,000 sq ft pharmacy space in Hallandale Beach, Florida and completed the move to its new 3,700 sq ft Orlando location in January 2021. Our expanded facility in Orlando should drive important performance gains, advances in productivity, volume, and market reach due to the expanded space and anticipated efficiency.
To sum up the year 2020, in response to the challenges posed by the COVID-19 pandemic, the subsequent lockdown in Florida and the severe negative effects on the Florida economy, the Company was nevertheless able to respond with flexibility and strong execution, capitalizing on Progressive Care’s built-in competitive advantages, including its established delivery infrastructure, to drive a seamless transition into a pandemic-ready operational strategy.
The Company’s strong results owe in part to its ability to shift in stride to a model centered on contactless prescription delivery, a range of digital solutions, and an overall experience for providers and customers that met the needs of its surrounding communities during an uncertain and unpredictable period. We experienced record quarterly revenue results. We filled more than 530,000 prescriptions in 2020, the highest in Company history. We had over $40.6 million in sales, the highest in Company history. The Company recorded over $600 thousand in revenues related to rapid results COVID-19 testing in the last six months of 2020, providing testing to over 5,000 patients. 340B revenue was $2.8 million, representing year-over-year growth of 323% compared to the year ended December 31, 2019.
All of these results continued our trend of year-over-year growth for the last 5 years. Our cash flow dramatically improved, as did our profitability, reputation, and ability to execute on new levels. We began to execute on our long-term business plan of expanding our footprint in the healthcare data management market by expanding our 340B Third Party Administration (TPA) service.
Outlook
Looking forward to 2021 and beyond, we look to continue progress on expansion of our ClearMetrX 340B TPA services, as well as our other data analytics platforms. At the end of the first quarter of 2021, we expect the ClearMetrX digital platform will be fully operational, which will allow us to expand our third-party administration services to 340B covered entities nationwide. The Company expects that growth in this revenue component will continue at a level at or above the record growth experienced in fiscal year 2020.
In February 2021, we entered into a service agreement with EagleForce Health, LLC to integrate its proprietary telehealth platform, called “myVax”, and develop a platform for the Company’s Digital Passport for COVID-19 Testing and Vaccination Results. We expect that this platform will be operational in the second quarter of 2021, and that it will include complete patient scheduling, telehealth, and tele-pharmacy platform services. The platform will manage an individual’s COVID-19 Vaccine and Test Journey documenting all transitions, including healthcare appointments, billing, and telehealth services. This will also include a Digital Passport or Digital Wallet that is QR-coded for registration, verification, and documentation of COVID-19 vaccination and/or test results.
This is expected to provide a powerful tool for various processes that the Company believes will come to depend upon accurate real-time virus spread risk abatement, including merchants such as cruise lines, airlines, sports venues, high-population-density, manufacturing, packing, or shipping facilities, and institutions such as school districts, universities, court proceedings, public transportation systems, and other service providers.
Upon completion of our 2020 audit, we intend to carry on with the process of uplisting to a national exchange, which will provide us with access to a much larger, more diverse pool of prospective investors, including a much wider institutional investor audience.
Management has the following 2021 Strategic Goals:
• Strive to achieve over $50 million in sales.
• Expansion of COVID-19 testing and vaccination programs.
• Completion of telehealth integration with the roll out of the Eagle Force Digital Passport program.
• Nationwide launch of ClearMetrX 340B TPA services.
• Secure additional not-for-profit healthcare contracts and long-term care facility relationships.
• Achieve full enterprise profitability and earnings growth.
• Become SEC-registered and fully reporting.
• Complete an uplist to a national exchange.
