NEW YORK, NY / ACCESSWIRE / April 27, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued an update note on ScripsAmerica, Inc. (SCRC).
The report is available here: SCRC Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
ScripsAmerica is a growing provider of specialty prescription and over-the-counter (OTC) pharmaceuticals and medical supplies. At present the company generates the majority of revenues from its high margin specialty pharmacy business, which is led by its Main Avenue Pharmacy subsidiary. Based in New Jersey, Main Avenue specializes in compounding and is licensed to prepare and fill prescriptions using topical creams rather than pill format. In recent weeks, ScripsAmerica provided a positive update for 2014 and 1Q15 results, and also announced its intention to acquire an equity interest in more specialty pharmacies that would expand its specialty pharmacy operations into an additional 30 states.
"We see 2015 as having the potential to be a watershed year for ScripsAmerica. We expect the company to generate significant growth over 2014 revenues of $30mn, with easy comparables in the first half of the year allowing time for the company to grow its budding PIMD business and expand its specialty pharmacy business through acquisitions as well as geographic expansion. Further, we expect an update on the status of the launch of RapiMed in Hong Kong, and it's new Physician Dispensing Program, which is scheduled to rollout during 3Q15.," stated Ajay Tandon, CEO of SeeThruEquity. "We are maintaining our 12-month price target of $1.20 per share."
Additional highlights of the update note are as follows:
Scrips reports strong revenue growth in fiscal 2014
ScripsAmerica released a business update on March 23, 2015, in which it confirmed preliminary fiscal 2014 revenues of over $30mn and a profitable second half of the year. The results were roughly in line with our estimate of $31.9mn on the top line, and we believe represent a significant milestone for the company. ScripsAmerica also disclosed a profitable beginning to the year, confirming that it would generate over $0.4mn in net income during 1Q15 on revenues of at least $9.5mn, representing growth of over 10x from 1Q14 revenues of $0.8mn. Although $9.5mn is a sequential decline from 4Q14 levels, management indicated that this was primarily the result of seasonality in the compounding business during January and February.
Acquisitions to dramatically expand compounding business
On March 6, 2015, ScripsAmerica announced its intention to acquire an equity interest in two additional specialty pharmacy businesses, which would increase the number of states in which the company can provide compounding to 40. As we noted during our initiation report on ScripsAmerica in December, we envision the specialty pharmacy division underpinning strong growth for ScripsAmerica for years to come. The company's Main Avenue unit can only provide compounding distribution in approximately ten states, so the proposed acquisitions have the potential to make a major impact on the specialty pharmacy business by increasing its geographic reach fourfold.
Gaining traction at PIMD
ScripsAmerica also appears to be gaining traction at PIMD International LLC ("PIMD"), a prescription drug and OTC branded products wholesaler located in Miami, FL, with DEA and state licenses to operate in eleven states. ScripsAmerica controls a 90% interest in PIMD, which specializes in providing medical wholesale services to hospitals, pharmacies and physicians, proving access to medications where there are shortages and customer inventories are below manufacturer allocation requirements. Although it is in the early stages, PIMD has experienced rapid growth from a small initial base, with revenues increasing from $135,000 in January to $554,000 in February.
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About ScripsAmerica, Inc.
ScripsAmerica, Inc. is a supplier of prescription, OTC and nutraceutical drugs, delivering pharmaceutical products to a wide range of end users across the health care industry. End users include retail pharmacies, hospitals, long-term care facilities and government and home care agencies.
For more information, visit www.ScripsAmerica.com.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.