Trxade Health Inc. (NASDAQ: MEDS) is a healthcare IT company that operates as an integrated drug procurement and delivery platform. It is focused on digitalizing the retail pharmacy experience by optimizing drug procurement and patient engagement. Headquartered in Lutz, Florida, the company is growing its network through partnerships with independent group purchasing organizations, after gaining a foothold in the business-to-business market.
The Company
Trxade became a public company in 2020 and operates through multiple business segments. The company is led by chief executive officer Suren Ajjarapu who has been holding that position since its inception. During the pandemic, Trxade helped patients avail remote healthcare delivery through its digital healthcare arm Bonum Health, a telehealth platform that joined the Trxade fold in 2019. The company’s contributions to facilitating COVID care show the business is well-aligned with the changing healthcare environment.
Products and Services
Integra Pharma Solutions, LLC. — Integra is intended to serve as the company’s logistics arm for pharmaceutical distribution.
Community Specialty Pharmacy, LLC. — This is an accredited pharmacy focused on specialty medications and operates with an innovative pharmacy model that offers home delivery services to patients.
Delivmeds.com – Devilmeds was launched as a consumer-based app to provide delivery of pharmaceutical products associated with Alliance Pharma Solutions. The application is being reformulated from a prescription delivery portal to a fully integrated, interoperable, end-to-end prescription delivery and medication adherence tool.
Trxade Prime – This division allows pharmacy members on the Trxade platform to process, consolidate and ship purchase orders that are placed directly with Trxade suppliers via Trxade Prime.
Bonum Health Hub and Application — BonumHealth Hub is a self-enclosed, free-standing virtual examination room that was launched by the company’s telemedicine subsidiary Bonum Health.
Bonum+ Business to Business — Bonum+ bundles telehealth, a COVID-19 risk assessment tool, and a personal protective equipment purchasing tool, through a secure mobile dashboard for corporate clients.
MedCheks Health Passport — The Health Passport is a patient-centered, digital, precision healthcare platform that lets patients consolidate and control their health data via a digital Health Passport and allows them to share their health profile, tests, and vaccinations simply and safely.
SOSRx, LLC – SOSRx was formed through a partnership with Exchange Health, LLC, a technology company providing an online platform for manufacturers and suppliers to sell and purchase pharmaceuticals.
Competition
PharmSaver, PharmaBid, and Theravance Biopharma are some of Trxade’s competitors. The company enjoys an edge over others due to its unique business model of providing both brand and generic products to pharmacy partners. Meanwhile, the monopolist wholesales who control most of the pharma industry – which is estimated to grow at an accelerated pace in the coming years — pose a challenge to the efforts to bring transparency in drug pricing.
Key Metrics
Trxade ended fiscal 2022 on a positive note, reporting double-digit revenue growth and a narrower net loss for the year. The business continued to add new members, bringing total memberships to about 14,400 at the end of the year.
Total revenues increased 36% from last year to $11.4 million in 2022, reflecting strong performance by the core Trxade division and the Trxade Prime business. The strong top-line performance translated into a decline in full-year net loss to $3.47 million or $0.41 per share from $5.32 million or $0.65 per share last year.
The bottom line benefited from a decline in operating expenses. At the end of December 31, total inventory stood at $119.582. Trxade is scheduled to report first-quarter 2023 financial results on May 8, after the market closes.
Updates
In January, the management intended to agreements to sell 100% of the outstanding membership interest in subsidiary companies like Community Specialty Pharmacy and Alliance Pharma Solutions. The company will receive $245,000 in consideration for both companies. The reorganization would allow it to focus on the strategy of continued innovation and partnerships to drive forward the core business-to-business strategy while diversifying the revenue base.
At the Bourses
Trxade’s shares have remained almost stagnant since the beginning of 2023, after starting the year on a positive note. The company’s market capitalization more than halved during that period. The stock has been experiencing weakness for quite some time, reflecting the company’s not-so-impressive earnings performance and muted investor sentiment. However, it looks poised to bounce back this year and regain most of the losses.
SWOT Analysis
Strengths
- The primary strength of Trxade is the innovative business model with a focus on its unique web-based platform that enables trading among healthcare buyers and sellers of pharmaceuticals.
- The response to Trxade’s services has been encouraging as it helps increase foot traffic and prescriptions for partner pharmacies
Weaknesses
- The company is yet to generate profit consistently, which is a hassle for investing in the business.
- Despite efforts to bring price transparency, there is a dearth of coordination among the stakeholders and pricing regulation across the healthcare industry.
Opportunities
- The ongoing digital transformation and shift to technology-enabled healthcare can increase the demand for the services being offered by the company.
- The growing interest among vendors to tie up with Trxade for providing value to independent pharmacies with competitive pricing.
Threats
- The healthcare industry is undergoing a transformation including widespread consolidation, so Trxade would be required to realign the business according to the changing trends.
- Pandemic-related supply chain issues and macroeconomic uncertainties continue to be a major challenge for pharmacy retailers.
The post Trxade Health Inc. (NASDAQ: MEDS) Q1 2023 Research Summary first appeared on AlphaStreet.