Progressive Care Releases Open Letter to Shareholders
MIAMI, Jan. 16, 2018 (GLOBE NEWSWIRE) -- Progressive Care Inc. (OTCQB:RXMD), through its subsidiaries Smart Medical Alliance, Inc. and PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, the sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long term care facilities, administration and practice management, utilization management, quality assurance, EHR Implementation, billing and coding, and health practice risk management, releases the following letter to Shareholders from the Company's Chief Executive Officer, S. Parikh Mars:
Dear Progressive Care Shareholders,
We begin 2018 with optimism and an unflappable sense of purpose and urgency. We have worked steadily to lay a solid foundation upon which we can grow and flourish through an ever-changing healthcare environment. The company remained focused on its vision for the future of healthcare and innovative approach to shape the pharmacy model. We worked throughout the year to prepare our facility and develop the processes that will lead the way in the pharmacy industry.
We also understand that you, our shareholders, have deservedly high expectations for achievement. To that end, we worked to elevate the status of Progressive Care to ensure that the investing public can look at the Company and rely on the information being presented. We thank you for the trust and support and we hope to continue to build on the momentum and deliver results we all can be proud of.
Toward the end of 2016, we had completed the build-out of the warehouse space and installed the Script Pro automation system. With necessary infrastructure and technology upgrades in place, the Company, through its subsidiary PharmCo, LLC, set out to achieve an ambitious set of goals. The beginning of the year saw quick implementation of new rules and regulations put in place by the Centers for Medicare and Medicaid Services (CMS) and Pharmacy Benefits Management (PBM) companies intended to lower healthcare costs by restricting networks to exclude independent pharmacies, lowering reimbursements, increasing direct and indirect remuneration fees (DIR), and transitioning to shared-risk models for healthcare provision. It was immediately unclear the fate of the Affordable Care Act (ACA) which lead many companies to hold off investing in the acquisition of ACA customers.
However, these changes did not distract us from executing the initiatives that would allow us to control our own destiny. We began with opening a PharmCo Pharmacy Resource Center in Century Village of Pembroke Pines which is a community of over 15,000 retirement age residents. This kiosk became the site of our first software development project: a tele-pharmacy platform. Through MDFlow, the platform is designed to allow patients and health care providers the ability to communicate via live stream video conference directly with a pharmacy technician or pharmacist located at the North Miami Beach location. The development of the platform is on-going but the benefits to brand loyalty, efficiency, and customer service are already being recognized.
In the beginning of the year, the pharmacy secured a relationship with Community AIDS Network to provide 340B services and accelerated the growth of its 340B services to Empower U. These organizations provide necessary medical services to patients with infectious diseases and are instrumental in the education and prevention of the spread of HIV/AIDS in South Florida. We have long supported the HIV/AIDS community and believe that participating in the 340B program is not only good for our bottom line but for the individuals and organizations affected by these life altering illnesses. During 2017 we billed more than $2.75 million worth prescriptions on behalf of these charitable organizations, generating over $100,000 in net revenues to the pharmacy. This is an over 500% increase in both respects over 2016. The gross billings of these prescriptions are not included in the over $20 million in net revenues announced for 2017, due to the structure of the 340B program and in accordance with GAAP.
In September, PharmCo faced the onslaught of Hurricane Irma. In the week leading up to the storm, we went through scrupulous measures to ensure that we delivered emergency medication supplies to every patient we could. We also provided resource support to our employees and local residents. After the storm passed, the pharmacy sustained no damage and was the first pharmacy in the area to open with full power and a fully stocked inventory. We worked with local officials to reach any patient in need. As hurricane season intensified, we worked to donate medicinal and wound care supplies to Haiti and Puerto Rico. We would like to thank our armed service members who make incredible sacrifices to help those most in need, which includes one of our own employees, who spent 3 months in Puerto Rico helping with recovery efforts.
The pharmacy throughout the year grew its year-over-year prescription count and net revenues, achieving over 21,000 prescriptions filled in October 2017, 225,000 prescriptions filled in 2017 and over $20 million in net revenues. PharmCo remains a 5 star pharmacy, leading the way in pharmacy and medication therapy management (MTM) performance. PharmCo also resumed adding non-resident state licenses which now includes 12 states in addition to Florida where the pharmacy can supply prescription medications.
Progressive Care as public entity experienced many notable achievements. During the first quarter of 2017 the Company released its 2016 audited financial statements, its first set since 2011. Soon after, we added 2 new independent board members with decades of capital markets and executive management experience. Mr. Jervis Hough and Mr. Oleg Firer have provided the company with valued guidance in navigating its future and have recommended key service providers that have helped the Company’s presence in the investment community. With 2 independent board members and a majority independent audit committee in place, Progressive Care applied and received approval to uplist to OTCQB in December 2017.
2017 Key Highlights
- Change of listing tier to OTCQB
- Addition of Independent Board Members: Jervis Hough and Oleg Firer
- Majority Independent Audit Committee
- Completion of 2016 Audited Financial Statements
- 225,000 prescriptions filled
- Over 21,000 prescriptions filled in a single month
- Over $20 million in net revenues
- Secured Community AIDS Network 340B contract.
- Doubled monthly 340B revenues since December 2016
- Raised over $2.75 million for 340B charitable organizations
- Reached over 50 employees
- Developed a tele-pharmacy platform in conjunction with software provider MDFlow
- Licensed in the following states: Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Pennsylvania, Texas, Utah, Arizona, Massachusetts
- 5 star rating
- Opened first PharmCo Pharmacy Resource Center
- Celebrated PharmCo's 10 year anniversary
2018 brings tremendous opportunity for Progressive Care. Over the last several years, we have worked to make sure that expertise in the healthcare industry flows throughout the organization from executive management to pharmacy technicians and customer service representatives. We began our own continuing education program for our employees so that they can help the company grow and excel with every customer interaction. We understand that healthcare models are changing across the board and with that comes the ability to seize upon the competitive advantages we have built. As the industry continues to evolve toward shared-risk, we know that providers will need the support of a reliable pharmacy to effectively manage the health of their patients. We have positioned the company to provide solutions to health providers from primary care to specialists to rehab facilities and surgical centers.
Our prowess with MTM, has garnered recognition from Outcomes, the leading MTM platform in the country. We believe that continuing the development of our MTM services and the presentation of our success story to physicians across Florida will allow us to achieve further sales growth and market penetration.
We expect to receive additional non-resident state licenses, which will enable us to expand our brand throughout the country. We continue to evaluate which states provide the best avenues for growth and development as we market our custom compounds and specialized services.
Lastly, we believe that the achievements over the past 2 years and the issuance of audited financial statements will improve our position when securing capital and executing on our M&A objectives. We have worked tirelessly to advance Progressive Care, its mission, and its performance so that it can be viewed by the investing public with the respect it deserves. We believe that we will deliver increases in shareholder value and financial results throughout 2018 by remaining focused and staying on leading edge of what it means to be a healthcare company.
The following are our strategic goals for 2018:
- Achieve 25,000 prescriptions filled in a single month by December 2018
- Increase annual overall sales to $22 million
- Secure additional 340B contracts and long term care facility relationships
- Further expansion into Palm Beach County
- Achieve accreditation for non-sterile compounding
- Achieve full enterprise profitability and earnings growth
- Publish 2nd year of audited financial statements and leverage these statements to secure new investment opportunities for mergers and acquisitions
- Opening more Pharmco Pharmacy Resource Centers in retirement and long term care communities.
- Strengthening our tele-pharmacy platform
The strength of Progressive Care has always been in the hands of its employees and its shareholders. Without the loyalty and dedication of both, this Company would not be where it is today. We have thrived because of the unyielding support in the face of immense challenges and we know that we must never waver in our desire to always earn the trust that has been bestowed upon us. Thank you to all who believe in us and we look forward to delivering another phenomenal year.
S. Parikh Mars,
Chief Executive Officer
Progressive Care, Inc.
About Progressive Care
Progressive Care Inc. (OTCQB:RXMD), through its subsidiaries Smart Medical Alliance, Inc. and PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, the sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long term care facilities, administration and practice management, utilization management, quality assurance, EHR Implementation, billing and coding, and health practice risk management.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target,” “intend” and “expect” and similar expressions, as they relate to Progressive Care Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
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