Now that it is a new year lets start looking toward the future. Assured Pharmacy is an excellent company to be watching as revenues are steadily rising. With an average of %25 percent per quarter assured pharmacy is a great place to start looking. Currently at $.36 per share, it is expected by the end of the fiscal year shares are expected to reach $1.00-$1.50. Assured pharmacy is working hard to bring prescriptions to those who suffer from chronic pain. With the institute of medicine pushing for all prescriptions to be written electronically by the year 2010 Assured Pharmacy is incorporating this technology to prepare for the future. Assured pharmacies are typically located in low traffic strip malls. They do not sell OTC drugs or other health and beauty aids typically found in drug stores. Their inventory consists solely of prescription pain medications and other prescription medications that their patients will need because of their pain medication�s side effects. The $1.895 million in Q2 �06 sales was 140% above $789,404 year-ago results. The last five quarters have averaged 25% quarter to- quarter growth. The fact that Assured Pharmacy accomplished this rapid growth with the same four pharmacies, two sales reps and no advertising demonstrates that the Company has (1) a successful and aggressive direct marketing plan, (2) increasing demand for its services and, (3) an effective sales force. Assured�s prescription business has also begun to expand beyond pain management as APHY�s pharmacies are now serving customers that require prescriptions for cancer treatment, neurological and psychiatric conditions. The Company opened a fifth pharmacy at the end of Q2 and it plans to open one additional pharmacy in December of 2006 and five additional pharmacies in 2007. In mid July it initiated a pilot advertising test, in two markets, to determine the most effective advertising media. Additional pharmacy openings, doubling its sales force from two to four reps and other initiatives recently take by the Company should help sustain the company�s current rapid growth rate. Therefore, I am projecting a 124% increase in �06 revenues to $8.6 million (from fiscal �05�s $3.837 million) and a 135% increase in �07 revenues to $20.2 million. Profitability should occur in Q3, 2007.
Both doctors and their chronic pain patients benefit from Assureds marketing/operating strategy:
� Pharmacists calling patients at least once per month to see if they are OK or need refill assistance (unique). � Rapid prescription fills or delivery by same day currier or overnight mail FREE OF CHARGE (unique). � Pharmacists who are experts in pain medications and DEA regulations provide rapid prescription verification that is handled smoothly and courteously without the patient ever feeling �judged.� � A free e-transfer prescription system (hardware/software/training) that provides valuable historical patient prescription information. 80% of APHY�s physicians use this system. Participating physicians can transmit prescriptions by wireless hand-held device or desktop computer directly to Assureds pharmacies. Assured Pharmacy�s marketing and operating plan provides unique solutions that other existing national, regional or local individually owned drug pharmacies DO NOT AND CANNOT PROVIDE because their pharmacy operations are not geared to do so. At the risk of sound clich� for the chronic pain prescription market, Assured Pharmacy has built �a better mousetrap.� Providing the above patient/doctor benefits assures APHY its customers� loyalty, their repeat business, and a long term patient/pharmacy relationship. As America�s population ages, its chronic pain problems will increase.