Open Letter to Shareholders Summarizes Recent Milestones
MIAMI, FL -- February 15, 2017 -- InvestorsHub NewsWire -- 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.
Significant Achievements
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 companys 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 PharmCos 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
Outlook
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
Closing Remarks
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 moments 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.
Best regards,
S. Parikh Mars,
Chief Executive Officer
Progressive Care, Inc.
MIAMI, FL -- February 15, 2017 -- InvestorsHub NewsWire -- 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.
Significant Achievements
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 companys 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 PharmCos 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
Outlook
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
Closing Remarks
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 moments 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.
Best regards,
S. Parikh Mars,
Chief Executive Officer
Progressive Care, Inc.
