Progressive Care Inc. (OTCQB: RXMD) recently acquired privately held Family Physicians RX Inc., immediately doubling the size and reach of Progressive Care and drastically increasing its revenue. In a recent interview, RXMD CEO S. Parikh Mars discusses this highly anticipated deal and how it will shape the company’s future.
An Expanding Horizon
RXMD, through its PharmCo LLC subsidiary, provides personalized health services and prescription pharmaceuticals in South Florida.
Through its acquisition of Family Physicians RX pharmacies, RXMD now operates four pharmacy locations and has expanded its delivery area to encompass Orange and Brevard counties with the capability to reach Hillsborough County on Florida’s west coast.
Based on historical sales data for all four locations, Mars says she expects RXMD will fill roughly 50,000 prescriptions each month, up from 28,000 monthly prescriptions filled prior to the acquisition. The long-term plan is to apply RXMD’s savvy marketing to the two new locations and quickly grow overall numbers.
In the audio interview, Mars states her confidence in the staff at the newly acquired locations and says she plans to utilize their talents to take the entire enterprise to the next level.
With the immediate addition of 18,000-20,000 new prescriptions a month, Mars projects RXMD’s monthly revenues to grow to between $2.8 million-$3 million, compared to revenues of $1.9 million a month recorded prior to the transaction.
Family Physicians RX set high expectations of its employees and prior to being acquired established significant headway into patient awareness and coaching. This position complements RXMD’s mission to improve the managed patient care model to give patients personalized prescription care and general medical guidance.
Under RXMD’s model, patients’ questions are answered by pharmacists well-qualified to provide accurate and personalized answers. If patients are unsure of how to take their prescriptions or what to do in the event of an adverse reaction, they can ask their pharmacist and potentially skip an unnecessary doctor visit. Family Physicians RX also implemented many of these standards into its pharmacies, which eases the transition process and employee integration for both entities.
RXMD is also exploring how automation and technology can further the overall patient experience. New software can help patients access 24/7 advice via telepharmacy solutions, and RXMD hopes to implement this across all locations in the future. In fact, Mars has seen a huge buzz around telepharmacy’s applications and says she is thrilled that RXMD helped to spearhead this technology to market.
A New Frontier
The next steps for RXMD include the nuts and bolts of corporate expansion. Initial shareholder meetings, audited financials, and a refiling with the SEC are all on the company’s to-do list. Mars is also excited to continue exploring its own cannabidiol (“CBD”) line. RXMD is currently working with two different brands and is carefully navigating the complicated legalities of the cannabis space.
RXMD is also designing a new flagship space to house its rapidly growing staff of roughly 125 employees. Its aim is to fill all prescriptions from one location by 2020. The company is also considering further expansion to Northern Florida and potentially Georgia. Its staff will continue to explore opportunities to determine the viability of each potential acquisition.
Understanding the Industry
RXMD has been able to keep up with industry trends better than its larger competitors, leveraging its smaller size to stay flexible and quickly adapt. This capability led the company to place in the top 94% of all pharmacies in the nation. After completing the Humana Inc.’s Rx Quality Network program, the company received the maximum incentive due to its adherence standards, which Mars says she aims to maintain.
As RXMD management plans its next steps, the company’s staff is determining how insurance and federal changes will affect their revenue in the next few years. From tightened restrictions to fewer reimbursements, the team is developing contingency plans that will insulate and protect RXMD from these inevitable shifts. For example, by instituting new methods of payment now, the company will be able to prepare and work with customers regardless of what the future has in store.
With the acquisition of FSRX complete, Mars expresses optimism for RXMD’s growth.
“We will leverage our common strengths and reputation to continue to expand,” she says. “We have accomplished many things in the last year… and I believe the best is still ahead of us.”
About the Author
Stuart Smith is the CEO and Founder of SmallCapVoice.com. SmallCapVoice.com. is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its clients’ financial news releases. SmallCapVoice.com also offers individual investors all the tools they need to make informed decisions about the stocks they are interested in. Tools like stock charts, stock alerts, and Company Information Sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets. To learn more about SmallCapVoice.com and their services, please visit https://www.smallcapvoice.com/the-small-cap-daily-small-cap-newsletter/