SOURCE: Progressive Care Inc

Progressive Care Inc

January 07, 2016 08:00 ET

Progressive Care Releases Open Letter to Shareholders

Open Letter to Shareholders Summarizes Recent Milestones

MIAMI, FL--(Marketwired - January 07, 2016) - Progressive Care, Inc. (OTC PINK: RXMD) ("Progressive" or the "Company"), a South Florida health services organization and provider of prescription pharmaceuticals specializing in health practice risk management, the sale of anti-retroviral medications and related medication therapy management, the sale and rental of durable medical equipment and the supply of prescription medications to long term care facilities, releases the following letter to Shareholders from the Company's Chief Executive Officer, Shital Mars:

Dear Progressive Care Shareholders,

The New Year is often a time of earnest reflection on the developments of last year and ambitious goal-setting for the year ahead. I am pleased to say that 2015 was a year of transformation and tremendous progress for the Company. In the past year, we have cemented ourselves as a health services organization that goes beyond being a provider of prescription pharmaceuticals and our numerous achievements have positioned us for further growth and success in 2016.

I would first like to thank all of the shareholders for their continued support of the Company. We greatly appreciate the trust you have placed in Progressive Care's operations, management, and mission. As we move forward, we will strive to capitalize on our momentum and create increased shareholder value.

Significant Achievements

Toward the end of 2014, the Company was in the midst of developing new revenue streams, innovating new services, streamlining its processes, renovating its facility and eliminating its aged debt. All of these changes came as a result of on-going planning and adaptation to the ever-changing healthcare industry. As reimbursements from Provider Benefit Management (PBMs) continue to squeeze gross margins, Progressive Care created new ways to generate revenue and provide industry leading services to our clients and customers.

The Company started the year off right by developing a successful compounding division. This new revenue stream brought the Company increased margins, new patients, and the opportunity to manufacture its own generic pharmaceutical substitutes for various ailments from diabetic neuropathy to erectile dysfunction. The success of our compounded medication marketing team led to the Company's first quarter of operating profitability and net cash flow gains since 2010. The Company currently estimates that compounded medication prescription sales amounted to nearly 30% of all sales in 2015.

Through PharmCo, LLC, the Company was also able to innovate new solutions to managing patient care. PharmCo added a case management team that assists patients with their personal and medical needs. It developed an in-home medical risk evaluation program, which sends a licensed representative to patients' homesto assess in-home health risks, patient quality of life needs, and address any problems with adherence to medication therapies. The Company also added a health practice risk management service for doctors' offices and clinics. This service is designed to review the health practice's therapy logs to find areas of improvement for patient health outcomes and reduction of therapy costs. While all of the services are provided free of charge to our customers and prescriber sources, they have catapulted the Company as a leader in the pharmacy industry. PharmCo now boasts preferred provider status by many PBMs as well among many healthcare institutions across South Florida.

Also early in 2015, the Company began investing in prescription filling equipment improvements and new software platforms that improve the Company's ability to monitor its growth and efficiency more effectively. These technological upgrades has allowed the Company to decrease workflow errors and production redundancies while also directing management to focus on areas of strength, thus capitalizing on comparative advantages within the organization.

Toward the end of 2014, the Company was in the process of renovating its flagship facility. By the second quarter of 2015, all major projects had been completed. The renovations modernized the facility, strengthened the brand and image of the Company in the community, and increased the productivity value of the square footage.

Lastly, our most significant achievement of the year was the completion of the 3(a)(10) transaction. While the process was lengthy and arduous at times, the Company can move forward into the New Year without the burden of aged debt on its balance sheet. I cannot stress enough how instrumental this achievement is to our ongoing success as an organization. With the support of our loyal shareholders, Progressive Care has been able to eliminate nearly $1.8 million in debt while also delivering shareholder value.

2015 Key Highlights

  • Development and success of the compounding division
  • Addition of industry leading products and services
  • Establishment of PharmCo as a preferred provider for both PBMs and healthcare institutions
  • Addition of new staff members and a dedicated marketing team
  • Completion of facility reorganization and modernization
  • Increased filled prescription counts by approx. 30% from 13,000 scripts per month to over 17,000
  • Increased pharmacy sales by 20% to $9.7 million through September 30, 2015

Outlook

Moving forward, we will pursue new avenues of advancement of the PharmCo brand through continued marketing campaigns and creation of new products and services. We will also look for opportunities to expand the pharmacy through establishing new locations or through mergers/acquisitions with similarly positioned independent pharmacies.

As we enter into 2016, we will look to take advantage of our marketing efforts with doctors' offices, clinics, and hospitals, as well as seek licensures in additional states in order to begin positioning PharmCo as a national brand. We will continue to expand non-sterile compounding department to develop new products and therapy alternatives. We will also seek to strengthen our financial reporting procedures by engaging an independent accounting firm to review the Company's financial statements.

The following are our strategic goals for 2016:

  • Increase filled prescription counts to 21,000 per month by December 2016
  • Increase annual overall sales to $16 million
  • To achieve superior performance ratings from PBMs to take advantage of new pharmacy bonus structures
  • Continue full enterprise profitability and earnings growth
  • Expand the current operation to include a close-door pharmacy facility

On December 30, 2015, we filed an attorney letter with respect to current information with OTC Markets. We expect that OTC Current status will be reflected on our symbol within a few days. We greatly anticipate that our continued marketing presence, strong community relationships and growth endeavors will produce significant results for the Company and its shareholders in 2016. On behalf of the entire Progressive Care team, thank you for sharing in our success and your on-going support.

Best regards,

Shital Parikh Mars,
Chief Executive Officer
Progressive Care, Inc.

About Progressive Care (RXMD)
Progressive Care, Inc. (OTC PINK: RXMD), through its subsidiary PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals specializing in health practice risk management, the sale of anti-retroviral medications and related medication therapy management, the sale and rental of durable medical equipment and the supply of prescription medications to long term care facilities.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, whether Progressive Care or its business continues to grow and whether any additional financing can be secured by Progressive Care and whether such additional financing will be adequate to meet the Company's objectives. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Progressive Care and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) Progressive Care's ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Progressive Care's ability to successfully expand in existing markets and enter new markets; (iii) Progressive Care's ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (iv) unanticipated operating costs, transaction costs and actual or contingent liabilities; (v) the ability to attract and retain qualified employees and key personnel; (vi) adverse effects of increased competition on Progressive Care's business; (vii) changes in government licensing and regulation that may adversely affect Progressive Care's business; (viii) the risk that changes in consumer behavior could adversely affect Progressive Care's business; (ix) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report contained in our Condensed Consolidated Financial Statements for the Year Ended December 31, 2014 and the subsequently filed quarterly reports in our Consolidated Financial Statements for the Quarter Ended March 31; June 30; and September 30, 2015 (Unaudited) filed with OTC Disclosure and News Service and current reports on Form 8-K filed by Progressive Care with the Securities and Exchange Commission. Progressive Care anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Progressive Care assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.