Progressive Care Reports Q1 Performance, Net Sales Surpass $9 Million Amid COVID-19 Impact
MIAMI, FL, May 18, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE ‒ Progressive Care Inc. (OTCQB: RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology company, is pleased to report financial results for the quarter ended March 31, 2020, which featured very strong revenue growth, especially considering the unique operating conditions during February and March due to the SARS-CoV-2 global pandemic health crisis. During the associated earnings call, management outlined specific competitive advantages and new initiatives positioning the Company for strong growth across all major metrics throughout 2020.
S. Parikh Mars, CEO of Progressive Care, commented, “The novel coronavirus has dramatically changed the landscape in countless ways, and many businesses are suffering from a pervasive lack of predictability and a torrent of new and unique existential challenges. Yet, despite it all, Progressive Care continues to see dramatic overall growth driven by strong execution, flexibility, and efficient positioning. We remain better positioned than most of our competitors to respond effectively to these extraordinary and unusual challenges, and to take full advantage of the many exciting opportunities for growth that lie ahead.”
First Quarter 2020 Highlights
- Consolidated quarterly year-over-year growth in Net Sales of 75% to surpass $9 Million for Q1 2020
- Prescriptions filled surpasses 134,000 in Q1 2020, up 59% versus Q1 2019
- March 2020 set new Company record for monthly prescriptions filled
- 340B Agency Revenue jumped 76% (vs Q1 2019) to nearly 200,000
- Net Loss of $795 K almost entirely attributable to PBM fees, with Q1 impact exaggerated due to seasonality of performance reimbursements
During the earnings call, Mars discussed dynamics important to interpreting the Company’s Q1 data and outlined a series of additional initiatives and projects currently underway that will further improve the Company’s financial performance and competitive positioning in 2020.
As discussed on the call, the root cause of the Company’s consolidated Net Loss for the quarter centered on a combination of major increases in fees charged by PBMs in 2020 and the seasonal timing offer accrual versus performance incentive reimbursements. This was further accentuated by the fact that many insurance carriers switched to PBMs that charge high fees to pharmacies in an attempt to keep the cost of prescription benefits low. These changes have resulted in a high concentration of the Company’s claims being processed by a single PBM, which has, itself, increased its fees nearly 3-fold in 2020. As of 2020, only one PBM offers the ability to receive refunds of fees through performance.