YEPPERS...
Tele-pharm + VIOSS electronics + PURDUE PHARMA Reps + Out-of-State licenses = National marketing + Increased Revenues.
As far as revenue, it’s a matter of marketing and developing the team. So we have worked with our own staff. Our own staff is working on recruitment to get marketers in other states as well as developing our brand recognition in those states. Read below for full context.
Here it is. 3rd Quarter 2017 Conference Call Transcript
Unidentified Analyst
Wonderful. And one last question if you don’t mind. Back in 2015 and in 2016 I think the focus was on acquiring state licenses and there haven’t – at least I may have missed some updates on that and I think we stopped it like seven or eight we had acquired. I wanted to ask, can you give an update on what your thoughts are or what your, so far as the revenue stream is generating – generating revenue stream for the state licenses might be for the business model?
Shital Mars
So that’s actually a really great question because we’ve made some advancements on that front and we just haven’t done much PR on it. The reason for the pause is PBMs – after we went and got and we had almost 11 licenses, 11 non-residents licenses at the time, towards the beginning of this year we got new guidance from pharmacy benefit managers and regulators that they were looking very strictly on the business conducted out of state. Many of them had instituted new rules that would disallow a company like ours to deliver product out of state, Optum being one of those. We cannot ship or deliver out of state for any Optum patients. And as you know Optum is UnitedHealth Care. So what we decided to do was hold off, see what the new changes were going to be before we went gung ho on it because it would be a shame to get all these licenses and then have it be strictly prohibited by the PBMs. So now that we see that the rules that are being put in place are benchmarks and thresholds and they want to see that we are meeting a certain compliance standard with any prescription we get from out of state and we understand those compliance requirements, we actually have gone out and look to acquire more states. We applied to Utah. I wish I could remember the other two. There are two other states that we applied to, to get licenses and we’re waiting to hear back. But we’re renewing that focus to getting out of state licenses and we now have the compliance. As you know, we have our own compliance staff here. We have the compliance staff in place to make sure that we follow all the rules and regulations so we don’t see any issues with moving forward into other states. As far as revenue, it’s a matter of marketing and developing the team. So we have worked with our own staff. Our own staff is working on recruitment to get marketers in other states as well as developing our brand recognition in those states. So we’re seeing some business in New York, New Jersey and Texas and some others that we have licenses in and those are growing as far as revenue wise. Keep in mind a lot of what would be shipped out of state would be those topical medications, those pain relief topical, those dermatological topical and some compounds as allowed by our PBMs and the insurance plans. We’re not talking about sending simvastatin to Texas.
Unidentified Analyst
Got you. So it seems like that scenario that’s still developing, still churning so to speak, would you give an estimate as to – in terms of the revenues that’s been reported, what percentage of the state licenses you might estimate – be a part of the current revenues, if you will?
Shital Mars
I would – last guess I saw a – I’m going to do some quick math kind of using my head here. So I would say it’s about 10% out of state.
Unidentified Analyst
Yes, sounds about right. I kind of estimated that myself, about 10%, 15%. So there’s a lot of room for growth there.
Shital Mars
Yes, there’s a lot of room for growth, lot of room for expansion on that. We kept it slow on purpose and we just went through a massive audit. A lot of those claims that were under review were out of state and we did very, very well on that audit. But we were waiting for something like that to occur, we were waiting for an audit like that to come through because we wanted to see how insurance companies are going to treat these out of state claims and what they’re looking for as far as compliance and making sure that we’re meeting all the compliance standards. So we have purposely held back on marketing out of state. Now that we know that our systems are good and our processes are good and we have the right team in place, we know we can move forward and start expanding again out of state.
Unidentified Analyst
Wonderful. That’s it for me. I think I’ve taken enough time. But I want to thank you for being transparent and providing this opportunity for interaction with your shareholders, really appreciate it. Thank you.
Shital Mars
Thank you for calling.
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