- Trxade Group’s supplier-to-pharmacy network, delivery services and data analytics platform are empowering independent pharmacies struggling to stay in business amid competitive challenges
- The company reported record revenues of $1.9 million for the most recent quarter, as well as other improvements to its top and bottom lines
- The plight of independent pharmacies has caught the attention of state officials in Illinois, who recently enacted Illinois’ first oversight system for the middlemen who manage pharmacy costs and reimbursement rates
Independent pharmacies in Illinois are celebrating recent state legislative action that strengthens small businesses involved in dispensing quality of life-enhancing medications to their customers, an empowerment trend that pharmaceutical services company Trxade Group Inc. (OTCQB: TRXD) has taken to heart as it builds its own growing network of independent pharmacies across the country.
Many of those mom-and-pop pharmacies have found it necessary to close up shop due to a variety of economic conditions, creating what have come to be known as ‘pharmacy deserts’, where residents remain without close-to-home options for fulfilling their prescription needs, especially if they are looking for a familiar business that knows its neighbors and goes the extra mile to assist them (http://ibn.fm/EVkGM).
Low insurer reimbursement rates have become a common complaint among community-oriented small business pharmacies nationwide. Several pharmacists have blamed the pharmacy benefit manager (PBM) middlemen who negotiate costs between pharmacies and insurers, such as Medicare, Medicaid and commercial health plans, arguing that the PBMs improperly drive up the costs of doing business and thereby force small pharmaceuticals out of business (http://ibn.fm/BGoRl).
Trxade’s network offers a platform for buying medications at competitive prices, as well as services for storing pharmaceuticals and delivering them directly to consumers, with an aim of helping sustain independent pharmacists amid their industry difficulties. Illinois’ legislature provided additional relief that was hailed by the Illinois Pharmacists Association in August by passing a bill that creates its first oversight system for PBMs, as reported by The State Journal-Register (http://ibn.fm/XtEA3). The state has also budgeted millions of dollars for pharmacy assistance out of concern for the small, independent shops, the report states.
Michelle Dyer, who operates three Michelle’s Pharmacy stores in the state, applauded the new law as “a great step to reign in the abusive powers that PBMs use against independent pharmacies,” adding that PBMs are “creating unprofitable environments that make it difficult to sustain business for independent pharmacies, and the result is that we’re seeing these businesses closing all the time in central Illinois,” according to the report.
Trxade’s own private enterprise approach to keeping the lifeblood flowing in independent pharmacies’ veins has seen its financial top and bottom lines grow. Its most recent quarterly report displays record revenue growth, as well as an increase in gross profits and a growing number of subscribers to the pharmacy network.
The company reported that revenues for the three months ended June 30 were over $1.9 million, marking an increase of 129 percent year-over-year. It also marked a 27 percent sequential increase over the first quarter ended March 31 (http://ibn.fm/hOCza).
“We made excellent progress executing against our key strategic priorities in our Delivmeds.com program, our B2C commercial efforts and our proprietary B2B trading platform www.Trxade.com,” Chairman and CEO Suren Ajjarapu stated in a news release. “Accordingly, I am optimistic that our new product lines will generate profitability as increasing pharmaceutical prices drive independent pharmacies, payors and consumers to be more aggressive in sourcing medication.”
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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