Progressive Care Inc (OTCMKTS:RXMD) has emerged as one of the top plays for investors looking to make money off the opioid crisis in the U.S. Every day, more than 115 people in the United States die after overdosing on opioids. The misuse of and addiction to opioids—including prescription pain relievers, heroin, and synthetic opioids such as fentanyl—is a serious national crisis that affects public health as well as social and economic welfare.
The Centers for Disease Control and Prevention estimates that the total “economic burden” of prescription opioid misuse alone in the United States is $78.5 billion a year, including the costs of healthcare, lost productivity, addiction treatment, and criminal justice involvement. While the opioid epidemic is heartbreaking and has destroyed countless lives, it is one of the biggest business opportunities at the moment. This is where RXMD comes in.
The stock has been steadily rising recently as investors take note of the opportunity for RXMD. As we dig deeper, we like what we see. RXMD was a big winner in the past for us at Insider Financial and the stock looks to be shaping up to run again. Have a look at the chart.
RXDM, through its PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, provider of tele-pharmacy services, the sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long-term care facilities, and health practice risk management.
Progressive Care has agreed to a secured promissory note providing $2.5 million in capital facility to the company, $1 million of which was funded on January 7, 2019 and $1.5 million will be available in tranches thereafter. The note supersedes the terms of the securities purchase agreement entered into in July 2016 which is no longer in force and effect.
Due to the company’s performance and growth trajectory, terms were negotiated to be significantly more favorable than were previously available. The Company has secured this capital in advance of an ambitious 2019 agenda which includes logistical implementation of the company’s unique service offerings (DischargeRx, TelePharmacy, Full Service 340B Program), development of new product lines and digital technologies, expanded sales efforts of the core business, build-out of the recently acquired property, and acquisition support.
Progressive Care recently announced its plan to relocate pharmacy operations, administrative offices, tele-pharmacy, and long-term care services from North Miami Beach to the recently purchased facility in Hallandale Beach, Florida. The Company also plans to provide an update on the company’s recent progress and upcoming product developments.
RXMD has recently gathered national attention due to its efforts to alleviate the national opioid epidemic. Just recently, Authority Magazine identified RXMD as a hero of the opioid crisis. Through its efforts, Progressive Care has remained committed to fighting the opioid epidemic by continuing to educate their community. The company believes that more education for doctors about pain management and more education for patients on practical health care at home leads to a better understanding to how our bodies work and therefore what we need to live a healthful life. CEO S. Parikh Mars told Authority Magazine:
“Progressive Care strives to put patients first by offering the best alternatives to opioid medications and by making the process to attain these medicines seamless and affordable. We are fighting for non-opioid treatments for pain to be routinely covered by insurance. Today insurance companies are restricting benefits to the point where a patient can no longer get coverage for outpatient pain management solutions other than prescription grade ibuprofen, or Tylenol. There are also many plans that will cover the opioid treatment after Tylenol has been tried, but not cover a similar in cost non-opioid treatment. This needs to change. We need to recognize that pain is subjective and no two pain patients are the same. We need to have all of the options available to treat patients with pain and cost needs to stop being the primary concern.”
Currently trading with a market cap of $29 million, RXMD is an exciting story among small caps. It was just 11 months ago when RXMD was trading around $0.07 a share before its massive run to $0.25 a share. Judging by the charts, RXMD could be set to make a similar run here in 2019.
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Disclosure: We have no position in RXMD and have not been compensated for this article.
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