Progressive Care Releases Open
Letter to Shareholders
Open Letter to Shareholders
Summarizes Recent Milestones
Miami, FL
-- January 16, 2018 -- InvestorsHub
NewsWire -- health practice risk
managementand the supply of prescription
medications to long term care facilities, administration and
practice management, utilization management, quality assurance, EHR
Implementation, billing and coding, n therapy management (MTM),
(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, medicatioProgressive Care Inc.
(OTCQB,
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.
Significant Achievements
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
Outlook
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
Closing Remarks
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.
Best
regards,
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.
Contact
Armen
Karapetyan
Senior Advisor
Business Development
armen@progressivecareus.com
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