Progressive Care Inc (OTCMKTS:RXMD) posted record revenues for the month of June even as a wave of consolidation in the pharmaceutical space threatens to have a catastrophic impact on small players. CVS Health Corp (NYSE:CVS) has already completed the acquisition of Omnicare and Target’s pharmacy and clinic business, further affirming its position in the business. Walgreens Boots Alliance Inc (NASDAQ:WBA), on the other hand, is pressing forward with its proposed $17 billion acquisition of Rite Aid Corporation (NYSE:RAD).
Offsetting Consolidation Wave
Given the wave of consolidation that only goes to undercut small players on drug sales, one would not have expected Progressive Care to post a 53% rise in sales. During the month, the provider of anti-retroviral medications received applications for more than 18,000 prescriptions, leading to record revenues of $1.7 million.
Progressive care has attributed the increase to its sales team having also started to ship compounds to new states. Record sales in June came after a record first quarter, where the company posted its first profit since 2010.
During the first three months of the year, the company says it filled about 51,000 prescriptions, a 32% increase from last year same quarter. Net income for the quarter stood at $100,000 or 2% of revenues. Filling more than 18,000 prescriptions in the month of June alone underscores the fact that the company is on course for an impressive year.
Sustaining Growth Momentum
In a bid to sustain the growth momentum the company is currently in talks with the Miami-Dade County as it looks to acquire permits for the construction of a new warehouse that should bolster its operations in the state. CEO, Parikh Mars, says they have also submitted new state applications and are also in the process of getting new sales staff as focus shifts to achieving future growth goals.
The company has already received non-residence pharmacy license in New Jersey and Pennsylvania. The licenses open the door for Progressive Care to start dispensing traditional and compounded medications to residents in the state through its facilities. The licenses add to similar approvals in New York Texas and Florida.
Progressive Care major undoing in the past was its inability to get its filings completed a move that hurt investor’s sentiments on the stock. Fast forward, the company seems to have sorted the issue thanks to concentrated market efforts and expansion into other states. However, the company still has a long way to go, as the likes of CVS and Walgreen continue to call the shots in the business.
CVS is the goliath of the pharmaceutical space having accounted for nearly 22% of the nation’s total prescriptions last year. Even though its number one position is under threat with the proposed merger between Rite Aid and Walgreens, its prospects and sentiments are as solid as ever on the street.
CVS Health Corp (NYSE:CVS) plans to increase its earnings per share by between 10% and 14% over the next few years at the back of robust growth of its pharmacy benefits management services business. Given its growth prospects, Progressive Care Inc (OTCMKTS:RXMD) still has a long way on its dream to become a force to reckon with in the industry.