One group that has lagged so far in the bull market run, but that may be poised for more interest ahead is the Pharmacy Services space. These companies are faring better than expected under the adverse conditions of the coronavirus health crisis, and they play an integral role in delivering crucial services to help communities survive the process.
But Wall Street hasn’t “found them” yet in this rally. With valuations at cheap levels and growth in the space picking up, they could be interesting. In addition, the space itself is evolving and becoming more of a tech-centric area, with big data, analytics, AI, and telehealth all starting to define operations. That could help to attach the stories into a more compelling thematic narrative.
Some of the most active and interesting names in the space include: Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), Progressive Care Inc. (OTCMKTS:RXMD), Walgreens Boots Alliance Inc (NASDAQ:WBA), and CVS Health Corp (NYSE:CVS).
Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) bills itself as a company that provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. The company also just announced a new deal with MSFT that we will cover below.
MDRX offers electronic health records (EHR), connectivity, private cloud hosting, outsourcing, analytics, patient engagement, clinical decision support, and population health management solutions. The company operates in two segments, Clinical and Financial Solutions and Population Health.
Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) and Microsoft Corp. announced the extension of their long-standing strategic alliance to enable the expanded development and delivery of cloud-based health IT solutions.
According to the release, the five-year extension will support Allscripts’ cloud-based Sunrise™ electronic health record, making Microsoft the cloud provider for the solution and opening up co-innovation opportunities to help transform healthcare with smarter, more scalable technology. The alliance will enable Allscripts to harness the power of Microsoft’s platform and tools, including Microsoft Azure, Microsoft Teams and Power BI, creating a more seamless and highly productive user experience. Allscripts is an award-winning Microsoft partner with past recognitions including 2019 U.S. Healthcare Partner of the Year and 2017 Global Healthcare Partner of the Year (Public Sector), and most recently received Microsoft’s 2020 Health Innovation – Reimagine Healthcare award for its subsidiary 2bPrecise.
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 12% in that timeframe.
Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) generated sales of $416.7M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -7.6% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($212.1M against $1.2B, respectively).
Progressive Care Inc. (OTCMKTS:RXMD) may be the most interesting name in this list. The company is a pharmacy player mostly in the Florida region, but has recently started scaling into ecommerce, telemedicine, and antibody testing, along with data analytics to improve customer management, cost management, provider management, and overall therapy management.
The company has excelled relative to peers during the COVID-19 crisis through delivery and contactless services, as well as its new antibody testing service, which it just announced has been expanded.
Progressive Care Inc. (OTCMKTS:RXMD) just said it has sold through over 90% of its COVID-19 Antibody testing kits. The Company has ordered additional kits and will be expanding testing to meet increasing needs.
According to its release, the Company, as of July 13, 2020, has sold through over 90% of its COVID-19 Antibody test kits and has processed a re-order to meet increasing demand. Appointments at the Company’s Miami location have been fully booked as Florida marks record-breaking testing and positivity rates. The Company is expanding antibody testing to offer services to Palm Beach County, Florida, and launching on-site services to enable antibody testing services for employees at their employment sites. The Company has been working with several referral sources including local labs, healthcare professionals, employers/business owners, and local airline affiliates who see the need and benefit of rapid antibody testing to enhance health safety initiatives.
Progressive Care Inc. (OTCMKTS:RXMD) generated sales of $9.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a year-over-year growth over 105% on the top line (March, monthly y/y) and 75% (May, monthly y/y). This much higher growth rate relative to peers should be noted given the company’s unique scalable model and smaller size.
CVS Health Corp (NYSE:CVS) is a health services company that offers plans in the United States.
Its Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, retail pharmacy network management, mail order pharmacy, specialty pharmacy and infusion, Medicare Part D, clinical, disease management, and medical spend management services.
The company’s Retail/LTC segment sells prescription drugs and general merchandise, such as over-the-counter drugs, beauty products, cosmetics, and personal care products, as well as provides health care services through its MinuteClinic walk-in medical clinics.
Its Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, medical management, Medicare plans, PDPs, Medicaid health care management services, workers’ compensation administrative services, and health information technology products and services.
CVS Health Corp (NYSE:CVS) said on Thursday it would require customers to wear face coverings while shopping at its U.S. pharmacies, joining a host of retailers in the country in their push to curb the spread of the COVID-19 pandemic.
Retailers including Walmart Inc, Kroger Co and Kohls Corp have already made it compulsory for shoppers to wear masks, which is widely accepted as one the most effective ways to keep the virus in check.
The stock has been acting well over recent days, up something like 3% in that time. Shares of the stock have powered higher over the past month, rallying roughly 14% in that time on strong overall action.
CVS Health Corp (NYSE:CVS) generated sales of $66.8B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -0.1% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($12.7B against $59.6B, respectively).
Walgreens Boots Alliance Inc (NASDAQ:WBA) trumpets itself as a pharmacy-led health and wellbeing company that operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale.
The company’s Retail Pharmacy USA segment sells prescription drugs and an assortment of retail products, including health, wellness, beauty, personal care, consumable, and general merchandise products through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services and mail services; and manages in-store clinics.
Walgreens Boots Alliance Inc (NASDAQ:WBA) has been recognized for the fourth consecutive year with a top score of 100 percent on the 2020 Disability Equality Index® (DEI), a joint initiative by Disability:IN and the American Association of People with Disabilities (AAPD).
The DEI is considered the most comprehensive benchmarking tool for corporate disability inclusion and was developed by disability advocates and business leaders. Walgreens, and its parent company Walgreens Boots Alliance, have a longstanding commitment to integrating people with disabilities across various aspects of the business.
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 6% in that timeframe.
Walgreens Boots Alliance Inc (NASDAQ:WBA) generated sales of $34.6B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -3.3% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($943M against $26.6B, respectively).