Walmart is rumored to be going after PillPack, a start-up company that bundles pills together into convenient pouches for easy access and use. Patients are increasingly turning to convenience packaging because it allows them to know exactly what they’re supposed to take and when. PillPack is an online pharmacy offering at-home delivery, providing even more reason to stay compliant with prescribed medication. Their business is built upon improving the customer’s experience, from the beginning to the end. While it’s currently unclear if this deal will go through, sources say that Walmart is offering PillPack just under $1 billion for the company.
PillPack is just one start-up in the pharmaceutical industry trying to increase the level of patient care in response to an increasingly impersonal system. Another company making headlines in the pharmaceutical world for their unique approach and novel concepts is Progressive Care, Inc. (OTC QB: RXMD). Progressive Care, Inc., through its PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, provider of tele-pharmacy services, sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long term care facilities, and health practice risk management.
The Walmart offer for PillPack comes at a critical time for RXMD. Until recently there have been few comparable pharmacies offering services similar to PharmCo, LLC. The market cap for RXMD has ranged between $4 million and $100 million. Now that PillPack is being offered a dollar figure from Walmart, RXMD has a way to assess what their Company is worth. Walmart’s current offer is slightly less than a $1 billion, however, it is widely assumed the transaction will close around that figure. At close to $100 million in revenue nationwide, PillPack’s valuation could provide needed clarity on the value of RXMD. RXMD released audited financial statements for 2017 indicating over $20 million in sales, the bulk of which is in the South Florida area. Like PillPack, RXMD’s model is absolutely invested in the safety and well-being of their patients.
One of the main focusses for RXMD is on Medication Management Therapy, and their success is measured by their positive cash flow and $20 million in net revenues. Managed care isn’t just good for patients, but for their doctors as well. Patients look to their doctors to both prevent and heal diseases, and they’ll measure their physician based on their success. By stressing a more proactive approach to the patient, the preventative care can naturally follow. RXMD currently offers a wide range of services that center around adherence and compliance to improve patient health outcomes. Free same day and next day delivery throughout South Florida, access to a full inventory of medications including specialty and compounded drugs, risk management services to physicians, and home health assessments for patients struggling with their medication regiment are just some of the services that take RXMD’s approach to the next level.
Progressive Care Inc.’s success is also because the Company doesn’t simply react to the shifting expectations in healthcare – they actively strategize ways to anticipate and exceed consumer expectations. Finishing out a successful 2017, they managed to follow up those achievements with over 65,000 prescriptions filled in the first quarter and approximately $5 million in net revenue, a record in both respects for the Company. Their subsidiary PharmCo is operating in 13 states and RXMD has also filed applications to register in three more states. The offer to PillPack also validates RXMD’s acquisition of Touchpoint Rx, LLC a Palm Beach County, FL pharmacy with the same convenience packaging technology as PillPack. RXMD intends to roll out this service, which was previously reserved to institutional customers only, to a retail patient with local accessibility
PharmCo, LLC is also a 5-star pharmacy that makes it easier for doctors and pharmacists to work together to meet their goals. Their pharmacists are more involved in the patient’s history, so they can spot potential errors or mistakes. As doctors adopt managed care, they receive more credit for their efforts and more recognition of their own efficacy in promoting wellness. Preventative care may take a little extra effort, but it’s far more efficient than waiting until a disease is out of control. As their success grows, doctors find they’re able to hit their coveted bonuses without any additional effort aside from their standard course of care. The best way to describe Progressive Care today, in the words of its CEO, S. Parikh Mars, is “profitable, growing, and determined.”
PillPack’s story is an exciting one, which is garnering interest from giants like Walmart. Like PillPack, Progressive Care has quietly built up an infrastructure based on sustainability in an ever-changing market. The current excellence in value added services that RXMD provides above and beyond what PillPack can offer suggests that one could make the argument that Progressive Care looks like an ideal candidate for another major player to target. RXMD achieves high marks at lower operating costs, higher per employee productivity, lower customer acquisition costs, higher ratio of revenue to market size, and local integration. Now that PillPack’s story is out there, the next place to look for innovation and success in the pharmacy and healthcare space is RXMD.
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/