Replies to post #17372 on ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

Alleyba, in his opinion believes SCRC will become more entrenched in acquiring these compounding companies which is pure speculation

Although it is indeed speculation to suggest that SCRC "will" become more entrenched in expanding in this niche compounding arena, it certainly would not be unreasonable to suggest that SCRC "should" seriously consider such a shift in focus (after all, SCRC still stated in the 10K that its business model was still evolving).

I had opined similarly in a post recently that aside from WRx and the compounding pharmacy ventures, all other existing revenue streams for SCRC are money losers and should be deep-six'd. There is nothing lucrative about trying to be a "mini-McKesson". The real McKesson along with other major players in this arena will simply crush SCRC the moment SCRC grows enough to be deemed a threat to them. And as a new player in the arena, the barrier to entry will be high to compete with existing larger players.

With compounding, the symbiotic relationship SCRC has w/Implex seems to be a mutually beneficial one. Implex has shown w/their involvement in the new PIMD to be adept at securing licensing and can be the owner of record of these compounding pharmacy entities, and SCRC can be the 3rd party mgmt company of choice that Implex engages to operate these compounding pharmacies. SCRC does not need to put up any capital and gets an easy 20% of revenues for each pharmacy it manages.

The trick will be to find compounding pharmacies that can be as profitable as the Main Ave one for prices comparable to the $550k that was paid for Main Ave. If $125k truly represented SCRC's 97% of anything close to gross profits for only a 6-wk period, then $550k was an absolute steal when you consider the annual profit this translates to. Careful DD will need to be performed to identify either under-performing pharmacies or pharmacies whose owners are under distress as these will be the opportunies where SCRC/Implex has the highest probability of being able to convince existing owners to sell for rock bottom prices.

But as I opined in a prior post recently, compounding combined with WRx will only be the foundation for SCRC. Along with growing the compounding business, SCRC needs RapiMeds to launch in mainland China into all those pharmacy and retail outlets that it boasted about in its PR's last year if it wants to really go KABOOM...