The biggest market news this week was about Amazon acquiring online pharmacy PillPack in a deal that is already sending shockwaves in the sector. The move caused a real decline in the shares price for competitors like Walgreens Boots Alliance, CVS Health and Rite Aid who have seen as their front of store sales are further threatened as shoppers increasingly buy household staples online. The move by Amazon adds truth to the recent rumors and show its real intent to push further into the health-care industry.
We recently wrote about the PillPack sales talks with Walmart, which had considered buying the start-up for less than $1 billion. That news was seen as a real positive by a little-known player in the space Progressive Care Inc. (OTC QB: RXMD). At the time, the talks between PillPack and Wal Mart was a validation for the moves RXMD was making and gave clarity on how to place a true market value on the young Company. Progressive Care, Inc., through its PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, provider of tele-pharmacy services, sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long term care facilities, and health practice risk management.
As they stand today, the Amazon and PillPack union is not ready to compete directly with RXMD. Progressive Care and PharmCo posses the unique ability to read and react with more fluidity on several fronts. The reality is lean and mean little startups can work in situations with a faster response time than a conglomerate like Amazon. To start with, Pillpack is not as much of a pharmacy as it is a tech company.
As a patient’s needs change, and they tend to rather quickly, Amazon and PillPack cannot respond with ease and at a price point like PharmCo. A thirty-day prepacked supply of medications can go from convenient to cumbersome if a doctor decides to change a single medication midmonth. Now the patient must open each pack and remove that single med and replace it with the new med. PharmCo is equipped to make that change send out the remaining month’s prepackaged meds with the updated medication the same day the doctor puts in the change. They also do this at no extra charge. Let’s not forget that the Amazon model calls for next day and same day delivery charges in excess of $8.00.
PharmCo, LLC is a 5-star pharmacy that makes it easier for doctors and pharmacists to work together to meet their goals. Their pharmacists are more involved in the patient’s history, so they can spot potential errors or mistakes. As doctors adopt managed care, they receive more credit for their efforts and more recognition of their own efficacy in promoting wellness. Preventative care may take a little extra effort, but it’s far more efficient than waiting until a disease is out of control. As their success grows, doctors find they’re able to hit their coveted bonuses without any additional effort aside from their standard course of care.
Like PillPack, Progressive Care has quietly built up an infrastructure based on sustainability in an ever-changing market. The current excellence in value added services that RXMD provides above and beyond what PillPack can offer suggests that one could make the argument that Progressive Care looks like an ideal candidate for another major player to target. RXMD achieves high marks at lower operating costs, higher per employee productivity, lower customer acquisition costs, higher ratio of revenue to market size, and local integration. Now that PillPack’s story is out there, the next place to look for innovation and success in the pharmacy and healthcare space is RXMD.
When it comes to innovation, I mentioned the tele-pharmacy services earlier. In May of 2018 Progressive Care announced that the company has started the development of its own proprietary tele-pharmacy software in order to digitally communicate with patients, physicians, pharmacists and caretakers across the world. The move comes as part of Progressive Care’s overall effort to expand its current kiosk program throughout the state of Florida. The new software will be designed with a secure interface for both providers and patients to offer a more personalized healthcare experience for both audiences. Additionally, a new design and database modeling will be integrated into the program. The company also recently announced the rollout of its online prescription management solution, as well as its decision to begin accepting Bitcoin payments from customers in February of 2018.
So as giants like Amazon enter the sector, investors should not see the moves as a threat to nimble companies like Progressive Care and PharmCo. They should add it up to see that RXMD, with its tech and market penetration as a legitimate acquisition target for a larger entity to take a long look at.
About the Author
Stuart Smith is the CEO and Founder of SmallCapVoice.com. SmallCapVoice.com. is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its clients’ financial news releases. SmallCapVoice.com also offers individual investors all the tools they need to make informed decisions about the stocks they are interested in. Tools like stock charts, stock alerts, and Company Information Sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets. To learn more about SmallCapVoice.com and their services, please visit https://smallcapvoice.com/blog/the-small-cap-daily-small-cap-newsletter/