Replies to post #118216 on Progressive Care Inc (fka RXMD)

[Jimmy Quick]

Progressive Care Inc. Announces March Sales and Issues Acquisition Update

MIAMI – April 23, 2019 – Progressive Care Inc. (OTCQB: RXMD)

UPDATE ON ACQUISITION:
The Company is nearing completion of its acquisition of Family Physicians RX (FPRX) a South Florida pharmacy with locations in Orlando and Davie, FL. The closing is scheduled to take place in the next 6 weeks to align with Medicaid advanced notification rules. After the closing, the Company will consolidate FPRX's nearly $1.5 million in monthly sales into its financial statements. The resultant combined company is expected to yield benefits beyond financial results including expansion opportunities in the I-4 corridor of Florida, economies of scale, and development of complimentary relationships and suites of services.

[Jimmy Quick]

RXMD Performing Outstanding Compared to Peers



In 2017, independent community pharmacies continued to lead the way in innovations that define the future of pharmacy practice. As Medicare Part D and other payers focus on quality of medication use, independent community pharmacists are providing the patient care services to ensure optimal medication therapy. Community pharmacists are accessible and have the expertise to manage drug therapies. Community pharmacists are finding ways to be part of health care teams managing chronic patient care scratch, but the number of startups was smaller than closings and the number of independent pharmacies has declined from 22,041 to 21,909 (Table 5, page 9). The more than 200,000 full-time equivalent workers employed in these stores stimulate local economies, pay state and local taxes, and provide high quality services that make a difference in the daily lives of patients.

http://www.ncpa.co/images/digest/2018-Digest-Web.pdf

An overview of the average independent community pharmacy is provided in Table 1, on page 5. In general, the average independent community pharmacy location dispensed 59,137 prescriptions (190 per day) in 2017, a slight decrease from the 59,746 prescriptions dispensed in 2016. Rural pharmacy closings, preferred or narrow networks, and mandatory mail order may have contributed to the flat growth in prescription volume in these independent pharmacies. Many independents continue to operate multiple pharmacies. Thirty-two percent of independent community pharmacy owners have ownership in two or more pharmacies and the average number of pharmacies in which each independent owner has ownership is two. Data for the Digest have been collected for more than 80 years, providing the opportunity to look at long-term trends for independent community pharmacies. Gross margins as a percentage of sales decreased from 23.2 percent in 2008 to 21.8 percent in 2017. While it’s interesting to note that major provisions of the Affordable Care Act went into effect at the midpoint, most of the decrease came over the past three years, caused by below cost reimbursement and unpredictable DIR fees in Medicare Part D.

Tables 2 and 3 show the recent financial trends:
- Average sales in 2017 per location were $3,540,013, a slight decrease from 2016.
- Gross margin decreased for a fourth straight year to 21.8 percent.
- Payroll expenses, as a percentage of sales, decreased from 13.1 percent in 2016 to 13 percent in 2017.