- Uplists to NASDAQ
- Added as component of Russell MicroCap Index
- Grew revenues 94% in 2019
- Added 3,200 pharmacies in 2019
- Total pharmacies on marketplace now number 11,400
Investors in Trxade Group (NASDAQ: MEDS) have received significant positive news regarding revenues and expansion. Revenues are up, and so too are earnings, as the company’s pharmaceutical platform gains in popularity. On average, every day in 2019, some eight or nine new pharmacies signed up to use Trxade’s services. All this and more came out in a recent online presentation featuring CEO Suren Ajjarapu. The presentation covered various aspects of the company’s operations, starting with a recap of major milestones (http://nnw.fm/63ZDq).
Founded in 2010 by Ajjarapu along with MEDS COO and president Prashant Patel, the Trxade Group spent its first three years working on the technology that would underlie its innovative pharmaceutical platform. Dedicated and passionate, Ajjarapu and Patel bootstrapped early development with some $5.5M of their own funds. Their efforts began to bear fruit in 2013, when the first client came aboard. Not resting on its laurels, the company launched a second service that year — a highly structured single platform — for pharmaceutical distributors to make sourcing supplies easier.
In 2014, the company’s progress continued with two major achievements. First, Trxade went public and began trading under the ticker symbol TRXD. And it also brought a new product — RxGuru — to market. RxGuru is a search tool for pharmaceutical prices. By 2017, the company’s more extensive product line and increased visibility attained by listing publicly began to pay off. The company also had its first quarter of profitability that year. Growth continued in 2018, during which Trxade acquired Community Specialty Pharmacy, an accredited independent retail pharmacy with a focus on specialty medications, and launched Delivmeds.com, a consumer-based app to facilitate delivery of pharmaceutical products.
In 2019, Trxade expanded the services offered by its drug-procurement marketplace when it acquired the telemedicine and telehealth platform operated by Bonum Health. In February 2020, it uplisted to NASDAQ and began trading under the stock symbol MEDS (http://nnw.fm/rDqy5). And in June, the company received word its stock had been added to the Russell MicroCap Index, a signal honor likely to increase investor interest (http://nnw.fm/Lb0ND).
The U.S. pharmaceutical market is an extensive network of pharmacies, drug companies and intermediate operators. Every year these entities create, distribute and sell $330 billion worth of supplies to the public. Historically diverse and heterogeneous, the industry presently includes around 65,000 pharmacies plus hundreds of suppliers licensed by various states. Just over one-third of these — about 24,000 — are independently run (not a branch of some large chain), but together they amass formidable buying power, representing approximately approximately $90 billion, or 20% of all drug purchases.
This vast sprawling behemoth is riddled with inefficiencies, however, with two major market frictions standing out. Middlemen, such as large pharmacy benefit managers, wholesalers and retail chains, operate in a way that stifles competition. Consequently, they capture significant excess margins, for which consumers ultimately pay. Moreover, pricing in the market is unpredictable. Suppliers, especially the largest three wholesalers — AmerisourceBergen Corporation, Cardinal Health and McKesson Corporation — often reprice and restock inventory on a daily basis, resulting in one price today and another tomorrow.
The Trxade platform can smooth these frictions out. Its trading tools allow independent pharmacies to analyze up-to-the-minute supply and pricing on a cost-effective basis. In addition, with all participants having access to the latest prices, transparency increases. Independent pharmacists no longer have to spend time trying to get the best deals for their businesses. It all represents a strong incentive for participation, and a reason for the company’s continued growth.
For more information, visit the company’s website at www.TrxadeGroup.com.
NOTE TO INVESTORS: The latest news and updates relating to MEDS are available in the company’s newsroom at http://nnw.fm/MEDS
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