Progressive Care, Inc. (OTC PINK: RXMD) (“Progressive” or the “Company”), a South Florida health services organization and provider of prescription pharmaceuticals specializing in health practice risk management, the sale of anti-retroviral medications and related medication therapy management, the sale and rental of durable medical equipment and the supply of prescription medications to long term care facilities, releases the following letter to Shareholders from the Company’s Chief Executive Officer, S. Parikh Mars:
Dear Progressive Care Shareholders,
2017 has taken off at a blistering pace. The New Year has brought exciting opportunities and a renewed sense of purpose in pursuing our goals and mission to elevate the role of pharmacies in the health care industry. Last year was full of accomplishments both big and small. These accomplishments have been the foundation upon which we plan to execute an ambitious agenda in the coming months and years.
I want to thank all of the shareholders for their continued support of the Company. Through your tremendous loyalty we have been able to reach new heights and seek out opportunities for growth that will make a difference this year.
At the end of 2015, Progressive Care and its wholly owned subsidiary PharmCo, LLC were on the precipice of great things. The 3(a)(10) transaction was completed in December 2015, eliminating nearly $2 million in aged debt off the balance sheet. Without any encumbrances, we moved steadfastly on our mission to transform the role of the pharmacy in the healthcare system and achieve success through aggressive growth of our brand and level of service.
Our first achievement came in early in the year by moving to the OTC Pink Current Information Tier. We also engaged an auditing firm to conduct third party reviews of our quarterly financial statements. Our efforts greatly improved the visibility and reliability of our public information, providing more trust and transparency to our shareholders.
We then embarked on a schedule of investor conferences to provide shareholders and investors an opportunity to interact with the management team in person. These conferences yielded relationships and feedback that have helped us navigate our future as a public company. With the wind at our back we began taking the necessary steps to reach the next level both financially and operationally.
During the summer of 2016, the pace of the company’s development accelerated with Chicago Ventures as our secured financing partner and the engagement of Boustead Securities, a California based broker/dealer (Formerly Monarch Bay Securities) to locate and secure mergers and acquisitions. With the first tranche of funds from Chicago Ventures, we have been able to complete the build-out of the warehouse space and start our new business venture, Smart Medical Alliance, a healthcare consulting company. Its goal is to unify the performance of the pharmacy and the physician to generate optimal health outcomes.
During the third and fourth quarters, the operation experienced many developments. With the warehouse space built-out and the Script Pro automation system installed, the filling capacity of the pharmacy has nearly tripled. The new work flow systems have improved efficiency, decreased waste, and enhanced accuracy. It also has allowed for more square footage to be devoted to long term care pharmacy services.
During 2016, PharmCo achieved 20,000 prescriptions filled in a single month, sustained positive cash flows, and profitability. Prescription counts grew over 20% and revenues grew over 34% when compared to 2015. Growth trends were due in large part to expanded marketing efforts, directed advertising, and word-of-mouth of PharmCo’s performance rating and the ability of the pharmacy to improve the performance ratings of the physicians it serves. The company provides services to nearly 12,000 patients of diverse demographics across South Florida.
2016 Key Highlights
- OTC Pink Current Information
- Engagement of PCAOB auditing firm for third party reviews of financial statements
- Secured financing partner: Chicago Ventures
- Secured Broker/Dealer Partner: Boustead Securities
- Attended multiple investor conferences
- Conducted Quarterly Earnings Calls
- Completed build-out of warehouse space
- Installed Script Pro Automation System
- Achieved 20,000 prescriptions filled in a single month
- Started Smart Medical Alliance, healthcare consulting company
- Became the primary 340B pharmacy for Empower U
- Switched Pharmacy Services Administration Organization (PSAO) and primary wholesale vender to Epic Pharmacy Network and McKesson
- Increased year-over-year prescription counts and revenues by over 20% and 34% respectively
- Cash flow positive and positive earnings
2017 brings many uncertainties for the healthcare industry. Changes are already underway by Pharmacy Benefits Management (PBM) companies to restrict networks, lower reimbursements, greatly reduce fee-for-service contracts and enhance capitated risk and performance reviews. In addition, government policy remains in flux with regard to regulations and maintenance of the healthcare system as a whole. As we adjust, we have been making great strides in diversifying our patient and physician base. We are also continually updating our products and services to best meet the needs of our customers as well as comply with the rules of an ever changing industry.
To start the year, we have engaged Berkowitz Pollack Brant, a PCAOB auditing firm, to conduct a full audit of the Annual Report to be issued for 2016 results. This will be the first set of audited financial statements of the company since 2011. As we move forward with our growth agenda, we will make sure that audited financial statements are no longer an impediment to securing the right avenues of advancement and development.
PharmCo has already secured another 340B contract with Community AIDS Network which will be active as of April 1, 2017. We look forward to developing this and all of our revenue streams including non-sterile compounding, Medication Therapy Management (MTM), and long term care. We will aim to maintain a stable foot hold in the community and continue to grow organically as we expand across the Southern half of Florida.
PharmCo also established a resource center in Century Village of Pembroke Pines with over 17,000 residents over the age of 55 years old. This resource center is for the exclusive use of Century Village residents and acts as a linkage point for the residents to get information about their prescriptions and what PharmCo can do for them. We anticipate that this resource center will yield profitable results during the year and be a platform to reaching the surrounding health care providers and other Century Village communities in Florida.
The following are our strategic goals for 2017:
- Achieve 25,000 prescriptions filled in a single month by December 2017
- Increase annual overall sales to $22 million
- Secure additional 340B contracts and long term care facility relationships
- Secure MSO contracts from insurance carriers for Smart Medical Alliance
- Achieve accreditation for non-sterile compounding
- Continue full enterprise profitability and earnings growth
- Publish audited financial statements and leverage these statements to secure new investment opportunities for mergers and acquisitions
- Achieve profitability for the Century Village and Smart Medical Alliance ventures
Many of our shareholders have been with the company for many years. They have witnessed downturns most other companies would not be able to overcome only to see us now steadily climbing the mountain of success. 2017 will be a year of tremendous change for the healthcare industry, but with this comes the opportunity to seize great prosperity for those who are ready. This company has the ability to adapt at a moment’s notice and is ready to take advantage of the momentum we have built over the last 2 years. With our corporate vision, team of skilled professionals, and the strength of our convictions to guide us, we believe that this year will be our best yet.
S. Parikh Mars,
Chief Executive Officer
Progressive Care, Inc.
About Progressive Care (RXMD)
Progressive Care, Inc. (OTC PINK: RXMD), through its subsidiary PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals specializing in health practice risk management, the sale of anti-retroviral medications and related medication therapy management, the sale and rental of durable medical equipment and the supply of prescription medications to long term care facilities.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, whether Progressive Care or its business continues to grow and whether any additional financing can be secured by Progressive Care and whether such additional financing will be adequate to meet the Company’s objectives. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Progressive Care and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) Progressive Care’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Progressive Care’s ability to successfully expand in existing markets and enter new markets; (iii) Progressive Care’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (iv) unanticipated operating costs, transaction costs and actual or contingent liabilities; (v) the ability to attract and retain qualified employees and key personnel; (vi) adverse effects of increased competition on Progressive Care’s business; (vii) changes in government licensing and regulation that may adversely affect Progressive Care’s business; (viii) the risk that changes in consumer behavior could adversely affect Progressive Care’s business; (ix) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report contained in our Consolidated Financial Statements for the Year Ended December 31, 2015 and the subsequently filed quarterly reports in our Consolidated Financial Statements for the Quarter Ended March 31; June 30; and September 30, 2016 (Unaudited) filed with OTC Disclosure and News Service and current reports on Form 8-K filed by Progressive Care with the Securities and Exchange Commission. Progressive Care anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Progressive Care assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.