- Pharmaceutical
services business Trxade Group recently reported its third quarter
financials, showing a new record for revenues amid continued growth in the
company’s business-to-consumer operation and services to independent
pharmacies
- The
company’s revenue growth amounted to a 173 percent year-over-year increase
for the quarter
- Trxade
Group’s quarterly report also showcased growing gross profits (with a
decreasing gross margin), shareholder equity and operating income
- The
company offers a web-based platform that maintains market intelligence on
over 20,000 medications and provides pricing and supply alerts to members
to help them secure the best possible prices
- Subscription
in Trxade Group’s platform continued to grow during the quarter, adding
431 independent pharmacies, which amounts to a nine percent increase over
the prior quarter and a 54 percent increase over the prior year
Third quarter financial results reported recently show Trxade
Group Inc. (OTCQB: TRXD) is continuing to maintain a profitable
integrated pharmacy services operation while working to redefine the health
care industry for the betterment of small independent pharmacists nationwide.
Trxade Group’s acquisition of Community Specialty Pharmacy,
LLC last year continues to drive the company’s revenue benchmarks, delivering
sales that lifted the company to record revenues of $2.3 million for the
quarter and nine-month year-to-date revenues of $5.7 million, which amount to
increases of 173 percent and 126 percent over previous year figures,
respectively, according to the company’s news release (http://ibn.fm/52imL).
Gross profits for the third quarter rose in tandem with the
revenues, increasing from $845,126 last year to $1.3 million this year. For the
year, through the end of September, gross profit was $3.6 million with a gross
margin of 63 percent, improving from $2.5 million and 99.5 percent a year
earlier.
According to the company, the improvement reflects “a sales
mix with greater revenue from Specialty pharmaceutical sales, which carries a
higher cost of sales, reflecting the lower margin, than the Company’s other
revenue sources.”
In the process, shareholder equity increased to $3.9 million
and the company’s debt was reduced, showing the strength of Trxade’s financial
controls and operational plan. Operating income also increased by 94 percent,
marking the seventh quarter in a row that the company has had positive
operating income.
“During the third quarter of 2019, we made excellent
progress in our core proprietary B2B trading platform www.Trxade.com, which enables
independent pharmacies to purchase drugs at discount prices compared to their
primaries, enabling us to experience top and bottom line growth,” Chairman and
CEO Suren Ajjarapu stated in a news release. “Additionally, we are investing in
core infrastructure for our B-to-C (Community Specialty Pharmacy) business in
our wholesale, e-commerce and delivery capabilities as increasing
pharmaceutical prices drive independent pharmacies, payors and consumers to be
more aggressive in sourcing medication.”
The company is currently preparing to begin the process of
upgrading to regular Nasdaq listing.
The Community Specialty Pharmacy (or ComspRX) business’s
online extension obtained certification as a legitimate and reputable
pharmaceutical operation by LegitScript, an independent third-party compliance
organization utilized by Google, Facebook, Visa and Mastercard to vet drug
advertisers on their platforms. ComspRX holds 15 state licenses, having been
certified by non-profit organization Accreditation Commission for Health Care
(ACHC).
The Florida-based Trxade Group pioneered the
supplier-to-pharmacy trading platform. The platform helps independent
pharmacies avoid the difficulties that come with losing reimbursement costs and
helps them identify the most competitive prices available for preferred
prescription drugs. Pharmacy subscriptions to the platform have grown steadily,
adding 431 new independent pharmacies during the third quarter – a nine percent
increase from the prior quarter and a 54 percent increase from a year earlier.
For more information, visit the company’s website at www.TrxadeGroup.com
NOTE TO INVESTORS: The latest news and updates
relating to TRXD are available in the company’s newsroom at http://ibn.fm/TRXD
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