Open Letter to Shareholders Summarizes Recent Milestones
MIAMI, Jan. 17, 2019 (GLOBE NEWSWIRE) -- Progressive Care Inc. (RXMD), through its PharmCo subsidiaries, is a South Florida health services organization and technology company, releases the following letter to Shareholders from the Company's Chief Executive Officer, S. Parikh Mars:
Dear Progressive Care Shareholders,
2018 and the years before it set the stage for evolution. Through careful planning, thoughtful solutions, and nimble mobility during tumultuous times, we have built a company capable of enduring. We achieved more last year than we have in any other year, but there is precious little time to appreciate all that we have accomplished. 2019 is the year to execute on big objectives in order to make our mark on an industry that looks to consolidate and eliminate those that fall behind. We aim to lead and believe that the industry will begin to look to us for answers.
Today, anticipation of our future is building. We look at the opportunities in front of us with steadfast intent and a knowledge that the choices we make this year will forever change the face of this organization. We cannot be intimidated by the uncertainty around us, but rather move forward with confidence in our path. We will only be successful by moving together with singular purpose. We will tell our story to all who will listen and show them the virtue of our mission and the prosperous results of our goals.
We understand that our shareholders have been a profound source of support for us. You have believed in the mission and rallied around our story as we began telling it to the world. We do not take for granted your loyalty and know that we must work to make you proud every day. We hope that you are as proud of 2018 as we are and look to 2019 with deepest sense of optimism.
We begun 2018 with our listing on OTCQB dramatically changing the status and visibility of the Company. The change in listing tier provided more comfort to the market and our shareholders that the information being presented can be relied upon. Our level of transparency reassured the investing public that our Company was different from the rest and taking steps to ensure that the market had the most up to date information we had to offer. We combatted naked short sellers and worked hard to protect our shareholders from bad actors and those that would disseminate false or misleading information about the Company. These efforts stabilized the market and improved its integrity.
After reaching record revenues in 2017 of $20 million the Company moved forward on an agenda that would make us more resilient in the face of industry changes and push past our competitors in terms of service, expertise, and technology. We sought to lead through our actions and capitalize on years of hard work in the face of adversity. We also sought to grow, not just through organic same store sales but through acquisition.
Early in 2018, we planted the seeds of growth by filling record numbers of prescriptions and issuing an LOI for our first acquisition. Execution on these fronts was crucial as our expansion into Palm Beach was accelerating and our same store sales would set the tone for the rest of the year. Quickly, we saw new clinics and doctor’s offices turn to PharmCo for pharmacy support as the necessity of patient adherence became abundantly apparent on performance scores. Our reputation for excellence on this front preceded us and we understood our prescription growth in 2018 would outpace 2017.
The second quarter brought extreme challenges and overwhelming joys. In April 2018, it became clear to us that insurance companies were drastically reducing reimbursement rates and benefits to patients. These aggressive cost cutting measures implemented by PBMs across the board greatly reduced revenue per prescription across all segments but compounding especially. While we devoted significant efforts to advocacy for our patients and expounded the detriment these measures were causing, the formulary changes and reimbursement rates remained. In addition, the implementation of higher DIR fees and other charges changed the way we evaluated our profitability and which sectors to focus our attention.
However, we were accustomed to dramatic industry shifts. We adapted and remained undeterred in our drive to succeed. We installed a new automation system to improve our adherence offerings as well as keep pace with the technological developments of our peers. We rolled out our web-based prescription portal to improve engagement with our customers. We engaged CMW Media to increase the visibility of our story and guide on our leadership path. Finally, we secured our first acquisition making PharmCo a 2-store brand in South Florida.
The acquisition of our second store is particularly special for us because of the work it took to get to that point. Finding a good location and a synergistic operation was difficult and valuations seemed to be beyond our reach. Securing the business, we did at the price we did was fortuitous. It allowed us to avoid months of regulatory hurdles, and hundreds of thousands of dollars of additional up-front costs that would have been necessary had we decided to start a new operation. It came with upgraded equipment and a team eager for growth and change. We rebranded the company under PharmCo and began to integrate it into our organization and culture.
We also, for the first time ever, met all of Humana’s quality measures. These measures are exceptionally difficult to meet and only the top 20% of pharmacies in the nation reach the goals set. Not only did we meet the goals, we far exceeded them, making PharmCo one of the top performing pharmacies in the country.
Over the summer we launched new initiatives and expanded on our core competencies. We sought to combat the opioid crisis through increasing awareness of available non-opioid treatments and the need for better education and training for pain management. We understand that there are obstacles to reducing opioid dependence as systemic structures prevent cogent solutions. Yet, as healthcare providers, we cannot sit idly by and watch our communities suffer without our intervention. We must act and we have worked to lend our voice to a growing chorus yearning for change and results.
We began our DischargeRx program designed to reduce to post-discharge non-adherence and preventable readmissions. Our program was piloted as Westchester Hospital for independent home-based patients and proved useful. Our ability to deliver prescriptions directly to the patient on the same day of discharge greatly increased the likelihood of post-discharge medication adherence. Eliminating impediments to care at home has proved to be our most valuable asset in reducing healthcare costs.
Toward the end of 2018, we began to receive media attention for the work that we have been doing to lead the industry down a new, more engaged path. Our message of personalized medicine was reaching new ears and industry publications were taking notice of our expertise in the field. We published numerous articles, conducted interviews, and spoke at conferences to push our vision of the future of pharmacy in front influential eyes.
We launched our Tele-pharmacy platform. This platform allows for live, secured, video-conferencing between patient and pharmacy is the future of digital facilitation of healthcare engagement. Upon this platform, we will be able to create a full-suite of digital healthcare solutions that will begin the technology revolution of our industry. It is an example of our leadership in the space.
Lastly, our proudest achievement, is the closing on PharmCo’s first property. The building of over 11,000 square feet will be the flagship facility, allowing for growth long limited by space. The building will house general pharmacy operations, long term care solutions, tele-pharmacy support, medication therapy management center, and corporate offices. Its location just off I-95 not only provides for speedy delivery but also means that passers-by will see our company from the highway.
2018 provided the foundation of our future. We believe our achievements last year will be remembered as the turning point for Progressive Care.
2018 Key Highlights
- Completion of 2017 Audited Financial Statements
- Secured first acquisition: PharmCo 1002 (Palm Beach County)
- Paid off all CVP notes
- Introduced Bitcoin and cryptocurrency functionality
- Launched Newly Designed Websites
- Launched New Prescription Platform
- Launched DischargeRx Program
- Launched Tele-PharmCo
- Launched 340B Backoffice Support
- Launched Program to Opioid Abuse
- LegitScript Certification
- Pilot Program: Westchester Hospital
- Over 300,000 prescriptions filled an increase of 35%
- Over 30,000 prescriptions filled in a single month
- Approx. $21 million in net revenues
- 5-star rating
- Top 20% Pharmacy in the nation
- Highest Humana Scores in Company history
- 4 active 340B contracts
- Increased 340B revenue by over 150%
- Processed over $6 million in claims on behalf of 340B entities
- Reached over 70 employees
- Licensed in the following states: Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Pennsylvania, Texas, Utah, Arizona, Massachusetts, Minnesota
- New PR Partner: CMW Media
- New Investment Bank: The Benchmark Company
- FlyPharma Speaking Engagement
- Florida Tele-health Summit Speaking Engagement
- Contributed Articles published in prestigious industry trade magazines: Pharmacy Times, Pharmacy Business, World Pharma Today, Drug Topics, Authority
- Purchase PharmCo’s first building: 400 Ansin Blvd
The Company has never been more optimistic than it is beginning this year. 2019 will undoubtedly bring hardships, but this Company has proven resilient and unfazed by headwinds no matter its cause. 2019 will be a year of tremendous transformation as we leap into our technological objectives. We intend to develop our own proprietary software for a number of applications that will greatly improve the way the healthcare industry interacts amongst itself and its patients. The platforms developed in 2018 will provide the base for further advancement, that will make the Company steps ahead of our competitors and create additional revenue opportunities.
We plan to begin development of our own line of CBD products to increase awareness of its therapeutic capabilities. We intend to provide patients with a brand of products that is easy to use, easy to understand, and meets the highest standards the industry has to offer. Putting our reputation behind the products we create will help patients feel comforted in the knowledge that a healthcare company stands behind the product they use for their well-being.
We expect to close on another acquisition. Growth through acquisition will improve our profitability, scale, geographical reach, and negotiating power with other organizations and insurance carriers. Upon execution of the acquisition currently underway, we hope to double the size we are today.
As always, we intend to continue to develop our core products and services, providing best in class solutions for medication therapy management, health consultations, compounding, long term care, post-discharge care, risk management, 340B, and adherence. Through further growth in these areas, we will increase same store prescriptions filled and revenues.
The following are our strategic goals for 2018:
- Achieve 40,000 prescriptions filled in a single month
- Increase annual same store sales to $24 million
- Close on second acquisition leading to consolidated revenue of over $35 million
- Secure additional 340B contracts and long-term care facility relationships
- Achieve accreditation for non-sterile compounding
- Achieve full enterprise profitability and earnings growth
- Install Tele-PharmCo enabled kiosks and equipment in senior living communities and large-scale clinics
- Develop exclusive line of CBD products
- Conduct PharmCo evidence-based case studies
- Release PharmCo’s first televised advertisement
- Become SEC registered and fully reporting
We start 2019 gazing out into an ocean of opportunity. Standing on the deck of a ship built to withstand headwinds and uncertainty, we set a course forward with fortitude in our spine. We who work here every day, buzz and hum with electric invigoration as we anticipate the exciting days ahead for a company with so much promise and purpose.
In 2018, we dug in, fought hard, built a trust in each other to take leaps together. The healthcare landscape changed and we persevered, undeterred by circumstances beyond our control. We grew, we evolved, we stepped forward to lead the industry and today, while we appreciate the difficult road behind us, we look to future.
As shareholders, we place our well-being and futures in the hands of this organization. We continue to believe in its mission and know, through faith and foundation, that the future is bright, and our achievement will rest on the solidarity of our team. It is humbling, the trust bestowed upon us who spend long days and nights here and we are immensely grateful for that trust. 2018 was a year of pride, strength, execution but 2019 will make the company of 2018 unrecognizable in the distance.
Thank you all for coming with us on this journey.
S. Parikh Mars,
Chief Executive Officer
Progressive Care, Inc.
About Progressive Care
Progressive Care Inc. (RXMD), through its PharmCo subsidiaries, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, provider of tele-pharmacy services, the sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long-term care facilities, 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.
Senior Advisor Business Development