Trxade Group Inc.’s (TRXD) Web Platform Promises Reduced Negative Reimbursement Costs for Pharmacies
- Trxade hosts a S2P (supplier to pharmacy) pharmaceuticals trading platform
- Over 10,500 registered pharmacies are listed on Trxade’s platform
- The company achieved record first quarter 2019 financial results driven by an increase in revenues
The proprietors of America’s independent pharmacies may well be cheering as the S2P (supplier to pharmacy) trading platform pioneered by Trxade Group Inc. (OTCQB: TRXD) swings into full gear, for its benefits extend to both trade and customers. The web-based platform not only identifies the best available prices for prescription drugs – a boon to patients – but helps pharmacists avoid negative reimbursement costs, which reduce profit margins. Over 10,500 pharmacies have already registered, and Trxade Group is hoping to convince most, if not all of the 24,000 independent pharmacies that its platform is a better deal when working with traditionally standalone group purchasing organizations (GPO) for secondary sourcing of prescription medication. The message appears to be getting a hearing. The company recently announced record first quarter 2019 financial results driven by an increase in revenues.
In the vast economic sector that is the U.S. pharmaceutical industry – $330+ billion a year – proprietors of independent pharmacies, many of whom are constrained in terms of time and resources, run $3.5 million-per-annum operations while struggling to maintain margins. In the past, they have turned to GPOs and other sourcing programs to reduce the purchase cost of drugs, which the GPOs were supposed to accomplish through the consolidation of buying power. The proof of the pudding, however, is in the eating. Over the past decade, independent pharmacies have been experiencing declining margins due to rising fees and reduced reimbursements from pharmacy benefit managers (PBMs) and volatility in drug costs.
It appears that GPOs have not been able to provide the service needed to these pharmacies. Instead, the PBMs are winning at their expense. Indeed, one study (http://nnw.fm/Tkg6g) reported, “Pharmaceutical benefit managers, a once obscure segment of the health care financing landscape, have become industrial behemoths in the U.S. health sector. In 2017, the top PBMs had revenues that exceeded those of the top pharmaceutical manufacturers, for example, Express Scripts reported revenue of $100 billion while Pfizer had revenues of $52 billion.”
Express Scripts is one of three large PBMs, along with CVS Health and OptumRx, that control 78 percent of the market, with 180 million enrollees on their books.
However, the online marketplace hosted by Trxade Group offers pharmacies a real opportunity to reduce purchase costs and much more. The integrated pharmaceutical services company offers not just a web-based purchasing platform for transactions between independent pharmacists and drug distributors (B2B), but also a network of associated pharmacies with its e-hub software; a mail order pharmacy; a warehouse; and drug delivery services. Called the TRxADE Exchange, the platform gives small pharmacies access to the wider pharmaceutical distribution supply chain network, allowing them to search for and view products from manufacturers, buying groups and wholesalers on a real-time and continuous basis.
Other services offered by Trxade Group include RX Guru, an industry-leading price prediction model that integrates product shortage insight into pharmacy acquisition benchmarks. The model aims to ascertain trends and pricing variances that provide significant purchasing opportunities that are not discernible to the rest of the industry.
For more information, visit the company’s website at www.TrxadeGroup.com
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
- Trxade hosts a S2P (supplier to pharmacy) pharmaceuticals trading platform
- Over 10,500 registered pharmacies are listed on Trxade’s platform
- The company achieved record first quarter 2019 financial results driven by an increase in revenues
The proprietors of America’s independent pharmacies may well be cheering as the S2P (supplier to pharmacy) trading platform pioneered by Trxade Group Inc. (OTCQB: TRXD) swings into full gear, for its benefits extend to both trade and customers. The web-based platform not only identifies the best available prices for prescription drugs – a boon to patients – but helps pharmacists avoid negative reimbursement costs, which reduce profit margins. Over 10,500 pharmacies have already registered, and Trxade Group is hoping to convince most, if not all of the 24,000 independent pharmacies that its platform is a better deal when working with traditionally standalone group purchasing organizations (GPO) for secondary sourcing of prescription medication. The message appears to be getting a hearing. The company recently announced record first quarter 2019 financial results driven by an increase in revenues.
In the vast economic sector that is the U.S. pharmaceutical industry – $330+ billion a year – proprietors of independent pharmacies, many of whom are constrained in terms of time and resources, run $3.5 million-per-annum operations while struggling to maintain margins. In the past, they have turned to GPOs and other sourcing programs to reduce the purchase cost of drugs, which the GPOs were supposed to accomplish through the consolidation of buying power. The proof of the pudding, however, is in the eating. Over the past decade, independent pharmacies have been experiencing declining margins due to rising fees and reduced reimbursements from pharmacy benefit managers (PBMs) and volatility in drug costs.
It appears that GPOs have not been able to provide the service needed to these pharmacies. Instead, the PBMs are winning at their expense. Indeed, one study (http://nnw.fm/Tkg6g) reported, “Pharmaceutical benefit managers, a once obscure segment of the health care financing landscape, have become industrial behemoths in the U.S. health sector. In 2017, the top PBMs had revenues that exceeded those of the top pharmaceutical manufacturers, for example, Express Scripts reported revenue of $100 billion while Pfizer had revenues of $52 billion.”
Express Scripts is one of three large PBMs, along with CVS Health and OptumRx, that control 78 percent of the market, with 180 million enrollees on their books.
However, the online marketplace hosted by Trxade Group offers pharmacies a real opportunity to reduce purchase costs and much more. The integrated pharmaceutical services company offers not just a web-based purchasing platform for transactions between independent pharmacists and drug distributors (B2B), but also a network of associated pharmacies with its e-hub software; a mail order pharmacy; a warehouse; and drug delivery services. Called the TRxADE Exchange, the platform gives small pharmacies access to the wider pharmaceutical distribution supply chain network, allowing them to search for and view products from manufacturers, buying groups and wholesalers on a real-time and continuous basis.
Other services offered by Trxade Group include RX Guru, an industry-leading price prediction model that integrates product shortage insight into pharmacy acquisition benchmarks. The model aims to ascertain trends and pricing variances that provide significant purchasing opportunities that are not discernible to the rest of the industry.
For more information, visit the company’s website at www.TrxadeGroup.com
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
