Progressive Care Inc (OTCMKTS:RXMD) shares dipped 3.53% on Tuesday but could be ready for a bounce with the company's latest update.
Progressive Care Inc (OTCMKTS:RXMD) shares dipped 3.53% on Tuesday to $0.0358 and stayed flat in after-hours trading. Share prices have been trading in a 52-week range of $0.01 to $0.05. The company has a market cap of $11.19 million at 341.11 million shares outstanding.
Progressive Care Inc is a health services company that is engaged in providing prescription pharmaceuticals specializing in health practice risk management, compounded medications, the sale of anti-retroviral medications and related medication therapy management, and the supply of prescription medications to long term care facilities. It is a health services organization focused on developing the PharmCo brand and provides 340B services to community organizations, patient health risk reviews, free same-day delivery and serves as a case management access point. Its subsidiary, PharmCo LLC, specializes in formularies, such as non-narcotic topical pain creams, wound care creams, scar gels and hormone replacement therapies.
In its press release yesterday, Progressive Care Inc announced the installation of ScriptPros CRS 225 robotic prescription dispensing system, which holds up to 225 individual medications and fills over 1000 prescriptions per day. This automated dispensing system will greatly increase production capacity, streamline workflow, and add an extra layer of quality control to the company’s accuracy management protocol. Testing is still ongoing and will be completed in November, lending some upside for the stock on positive updates.
This is a long anticipated moment for us and we are so excited to see the modernization of our facility coming to fruition,” remarked Progressive Care Inc CEO Parikh Mars.
As it is, PharmCo is filling just under 1000 prescriptions per day without the assistance of the automation system, and the ScriptPro CRS 225 is expected to at least double filing capacity without increasing labor costs. Apart from the improvements in the workflow process, it is also expected to increase accuracy and eventually yield financial benefits for Progressive Care Inc in the coming quarters as more institutions avail of the system.
Earlier in the month, the company reported 45% year-over-year sales growth on 19,000 prescriptions and $1.6 billion in revenue, and that’s even without its latest automation system in place.
The Company continues to lead the industry in the quality and breadth of services we provide, which has allowed us to become one of the most sought after healthcare services companies in South Florida,” remarked Progressive Care Inc’s CEO.
A quick look at the daily time frame of Progressive Care Inc shares shows that price is still hovering close to support just slightly below $0.03. Bulls are pushing higher, as evidenced by the higher lows since August and September but has yet to gain more bullish momentum. In fact, a small ascending channel can be drawn to connect the recent highs and lows, with the next ceiling located at $0.04.
Stronger upside pressure could lead to a sharper climb, taking share prices up to the $0.05 area. Of course it would take a strong catalyst to take the stock all the way there and volume has been subdued so far. A return in investor interest, possibly spurred by testing results of the ScriptPro CRS 225 later next month, could extend this stock’s rally. The company has been exceeding its targets in the past few quarters and it’s highly likely that its automated system could generate more revenues in the coming months.
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