- RMXD news indicates that a synergistic tech-healthcare collaboration with potential to ignite both growth and revenues is in the works
- “Restructuring whiz” takes the helm as CEO, board chair
- Through technology and proven processes, Progressive Care helps simplify chaos, improve care and reduce costs
Recent developments bode well for the future of Progressive Care (OTCQB: RXMD). On a mission to snag ever more market share using data management and analytical tools, the well-established healthcare company might be on the cusp of breaking out of slow-growth mode and into rapid expansion. Several factors are at play that could prove meaningful for the company and its stakeholders.
Recent news from the company indicates that a synergistic tech-healthcare collaboration is in the works that has the potential to ignite both growth and revenues. In a series of rapid-fire announcements, Progressive Care completed a recapitalization of its debt and received a strategic investment of $6 million from NextPlat Corp (NASDAQ: NXPL) (https://ibn.fm/5MlTc), a tech-driven, global e-commerce platform company that collaborates to capitalize on high-growth opportunities. All indications are that NextPlat has identified RXMD as a high-growth opportunity with significant upside potential.
In the transaction, NextPlat CEO Charles M. Fernandez, who “Fortune” Magazine called a “restructuring whiz” (https://ibn.fm/tWlm7), along with other investors, purchased an estimated $2.8 million of convertible debt in Progressive Care. He was also named chairman of the board of Progressive Care and assumed the role of CEO of the company shortly after. Commenting on the move, Fernandez stated in part, “I am taking on this role with the goal of maximizing the synergies that exist between NextPlat and Progressive Care” (https://ibn.fm/g921L).
Clearly, a tech infusion is underway at Progressive Care.
At its heart, Progressive Care is a tech-centric healthcare organization. Through its wholly owned subsidiaries, the company delivers personalized healthcare and pharmaceutical services along with technology that helps the managed healthcare industry reduce costs and improve quality of care (https://ibn.fm/lmFDQ). Technology appears be the only solution to administering the patchwork system of government programs and the jumbled maze of laws, rules, regulations, requirements, protocols, and politics that have pushed U.S. healthcare into the stratosphere of complexity and confusion.
Through technology and proven processes, Progressive Care helps simplify the chaos to improve care and reduce costs for patients, prescribers, providers, and managed-care entities. The company delivers these services through its two subsidiaries:
- PharmcoRx, a full-service pharmacy that provides a complete healthcare ecosystem offering a wide range of services to patients and physicians (https://ibn.fm/cvflW). Major healthcare organizations’ customers in Florida give PharmcoRx rave reviews.
- ClearMetrX, a data-management company, provides services that support healthcare organizations across the nation (https://ibn.fm/b2Spn). ClearMetrX recently launched the 340MetrX Platform, a proprietary software product that delivers 340B-covered entities actionable data insights, enabling them to best operate and maximize the benefits of the 340B program.
Information gleaned from Progressive Care’s website and its recent Form 10-K (https://ibn.fm/YZqQ2) suggests that a push into the booming Federal 340B Drug Pricing Program is coming. Seems to make even more sense given the recent backing of tech wizardry from NextPlat. Info from the Form 10-K states, “A key objective within organizations with access to large data collections is to harness the most relevant data and use it to optimize decision making. ClearMetrX developed the 340MetrX platform that retrieves dispensing pharmacy data to provide physicians and 340B covered entities with valuable and insightful reports and analytics to manage their operations.” Sophisticated software that serves a booming market providing actionable intelligence to manage costs and improve care could become quite valuable.
It’s little wonder then that the 340B program could be part of RXMD’s target market. 340B has experienced eye-popping growth, expanding at more than 4.5 times the pharmaceutical market growth rate from 2017 to 2020 (https://ibn.fm/gpY43) — and many expect that trend to continue or even accelerate. The program is so popular because 340B allows eligible healthcare clinics and hospitals to purchase outpatient drugs to treat the uninsured or underinsured at a 20–50% discount (https://ibn.fm/Bdf3D). Growing 76% from 2017, 340B program sales exceeded $80 billion in 2020 with 18.1% year-on-year growth vs. 2019.
Since 2006, Progressive Care has steadily been building its customer base, revenues, and a reputation for excellence. The development of the ClearMetrX software and expansion of PharmcoRx, combined with a synergistic tech-healthcare collaboration with NextPlat, could be the impetus that sparks rapid expansion and unleashes upside potential.
For more information, visit the company’s website at www.ProgressiveCareUS.com.
NOTE TO INVESTORS: The latest news and updates relating to RXMD are available in the company’s newsroom at https://ibn.fm/RXMD
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