SeeThruEquity Initiates Research Coverage on Scrip
Post# of 7769
Posted On: 12/02/2014 9:16:08 AM
SeeThruEquity Initiates Research Coverage on ScripsAmerica with a Price Target of $1.20 Go SCRC! Tut
Dec 02, 2014 (ACCESSWIRE via COMTEX) -- New York, NY / ACCESSWIRE / December 2, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has initiated coverage on ScripsAmerica, Inc. (OTCQB: SCRC) with a 12-month price target of $1.20.
The report is available here: SCRC Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms.
In our estimation ScripsAmerica is an undervalued speculative growth company in the medical industry. The company has experienced robust growth in its specialty pharmacy segment since the launch of this business, with orders that surpassed a $60mn annual run rate in October. The specialty pharmacy business specializes in compounding, or the mixing of drugs by a pharmacist to fit the unique needs of a patient. It is a high margin business that we expect can drive positive free cash flow for ScripsAmerica as soon as the second half of this year. Additionally, we see several potential catalysts over the next twelve months as the company expands its presence in specialty pharmacy and prepares for the commercial launch of a branded over-the-counter ("OTC"
product called RapiMed, which is a children's pain reliever and fever reducer using the company's oral delivery technology.
"We see several potential catalysts ahead for ScripsAmerica. We expect the company to release its new RapiMed product line of acetaminophen for children's pain and fever relief utilizing its oral delivery technology in Hong Kong during the fourth quarter of 2014. Further, we suspect that investors may have overlooked the substantial operating progress made in the company's high margin specialty pharmacy business. In fact we expect this progress will enable ScripsAmerica to generate positive adjusted operating income and cash flow in the back half of the year, as was demonstrated by strong 3Q14 results released," stated Ajay Tandon, CEO of SeeThruEquity. "We are initiating coverage with a 12-month price target of $1.20 per share."
Additional investment highlights are as follows:
Specialty Pharmacy business expanding rapidly
Since launching its specialty pharmacy business in earnest after the strategic acquisition of Main Avenue Pharmacy in February, 2014, ScripsAmerica has experienced dramatic order growth, with specialty pharmacy orders reaching $5.6mn in October, demonstrating strong execution by ScripsAmerica's management team. Through Main Avenue Pharmacy, ScripsAmerica offers high margin compounding services in the form of various topical skin creams. This specialized service has many advantages for physicians, including that it provides them the ability to provide customized treatments for their patients without prescribing oral controlled narcotic medication such as vicodin or oxycontin. Indeed, ScripsAmerica has grown the business sequentially in each month since the transaction and has built a business with annualized sales of over $60mn. ScripsAmerica's management team has indicated that it has established compounding partnerships with four additional pharmacies, which could triple the number of states in which the company can operate this business, from seven to 21.
Launch of RapiMed to drive growth in 2015 and beyond
ScripsAmerica is poised to expand its business by entering the oral delivery technology (ODT) market with the launch of RapiMed, an over-the-counter children's acetaminophen product which comes in fruit flavors and uses proprietary technology to mask the bitter taste of acetaminophen. ODT is one of the fastest-growing sectors of the drug delivery market, fueled by patient demand and consumer preference of the technology over traditional tablets or liquids. The global market for ODT is increasing at double-digit rates expected to reach $13Bn in 2015. We see several potential catalysts upcoming for ScripsAmerica in this area, with the launch of the RapiMed expected by the end of the year in Hong Kong and in 1Q15E in China. Management has indicated that it expects to be able to launch the product in other geographies in 2015E, and plans to use its proprietary technology for other formulations in the future including vitamins, sleeping pills, and allergy medication, and migraines.
Please review important disclosures on our website at www.seethruequity.com.
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.
About SeeThruEquity
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.
Contact:
Ajay Tandon
SeeThruEquity
(646) 495-0939
SOURCE: SeeThruEquity
http://www.accesswire.com/img.ashx?id=423650
Copyright 2014 ACCESSWIRE
Dec 02, 2014 (ACCESSWIRE via COMTEX) -- New York, NY / ACCESSWIRE / December 2, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has initiated coverage on ScripsAmerica, Inc. (OTCQB: SCRC) with a 12-month price target of $1.20.
The report is available here: SCRC Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms.
In our estimation ScripsAmerica is an undervalued speculative growth company in the medical industry. The company has experienced robust growth in its specialty pharmacy segment since the launch of this business, with orders that surpassed a $60mn annual run rate in October. The specialty pharmacy business specializes in compounding, or the mixing of drugs by a pharmacist to fit the unique needs of a patient. It is a high margin business that we expect can drive positive free cash flow for ScripsAmerica as soon as the second half of this year. Additionally, we see several potential catalysts over the next twelve months as the company expands its presence in specialty pharmacy and prepares for the commercial launch of a branded over-the-counter ("OTC"
product called RapiMed, which is a children's pain reliever and fever reducer using the company's oral delivery technology. "We see several potential catalysts ahead for ScripsAmerica. We expect the company to release its new RapiMed product line of acetaminophen for children's pain and fever relief utilizing its oral delivery technology in Hong Kong during the fourth quarter of 2014. Further, we suspect that investors may have overlooked the substantial operating progress made in the company's high margin specialty pharmacy business. In fact we expect this progress will enable ScripsAmerica to generate positive adjusted operating income and cash flow in the back half of the year, as was demonstrated by strong 3Q14 results released," stated Ajay Tandon, CEO of SeeThruEquity. "We are initiating coverage with a 12-month price target of $1.20 per share."
Additional investment highlights are as follows:
Specialty Pharmacy business expanding rapidly
Since launching its specialty pharmacy business in earnest after the strategic acquisition of Main Avenue Pharmacy in February, 2014, ScripsAmerica has experienced dramatic order growth, with specialty pharmacy orders reaching $5.6mn in October, demonstrating strong execution by ScripsAmerica's management team. Through Main Avenue Pharmacy, ScripsAmerica offers high margin compounding services in the form of various topical skin creams. This specialized service has many advantages for physicians, including that it provides them the ability to provide customized treatments for their patients without prescribing oral controlled narcotic medication such as vicodin or oxycontin. Indeed, ScripsAmerica has grown the business sequentially in each month since the transaction and has built a business with annualized sales of over $60mn. ScripsAmerica's management team has indicated that it has established compounding partnerships with four additional pharmacies, which could triple the number of states in which the company can operate this business, from seven to 21.
Launch of RapiMed to drive growth in 2015 and beyond
ScripsAmerica is poised to expand its business by entering the oral delivery technology (ODT) market with the launch of RapiMed, an over-the-counter children's acetaminophen product which comes in fruit flavors and uses proprietary technology to mask the bitter taste of acetaminophen. ODT is one of the fastest-growing sectors of the drug delivery market, fueled by patient demand and consumer preference of the technology over traditional tablets or liquids. The global market for ODT is increasing at double-digit rates expected to reach $13Bn in 2015. We see several potential catalysts upcoming for ScripsAmerica in this area, with the launch of the RapiMed expected by the end of the year in Hong Kong and in 1Q15E in China. Management has indicated that it expects to be able to launch the product in other geographies in 2015E, and plans to use its proprietary technology for other formulations in the future including vitamins, sleeping pills, and allergy medication, and migraines.
Please review important disclosures on our website at www.seethruequity.com.
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.
About SeeThruEquity
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.
Contact:
Ajay Tandon
SeeThruEquity
(646) 495-0939
SOURCE: SeeThruEquity
http://www.accesswire.com/img.ashx?id=423650
Copyright 2014 ACCESSWIRE
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