- Trxade Group is providing independent pharmacies with the tools they need to stay in business as health care pricing continues to be a political point of contention by establishing collective networking power, delivery services and data analytics resources
- Lawmakers at state and federal levels are increasingly pushing for transparency in drug-pricing protocols, and Trxade Group is using its reputation for transparency to build merchant trust
- The company reported a 129 percent YOY increase in revenues on its most recent quarterly financial results, demonstrating the strength of its model
The ever-increasing costs involved in providing for people’s health care needs have created strong political undercurrents in recent years, as exemplified in the United States by the Patient Protection and Affordable Care Act of 2010 and its oft praised and reviled nickname, Obamacare. The act required all Americans to get health insurance or pay a tax, while also making it easier to do so, but it drew the ire of ‘less government’ conservatives, who succeeded in repealing the mandatory enrollment clause nearly a decade later, in turn creating concerns about insurer insolvency as healthy patients drop out of care plans (http://ibn.fm/dlDIp).
As insurers wrestle with their own complicated business strategies, independent pharmacies are similarly struggling to survive as they serve patients’ health care needs. Once a community standard described simply as “the corner store,” they now operate as a small fish in a big pond of nationally networked retailers. Pharmaceutical services company Trxade Group Inc. (OTCQB: TRXD) has made its mission to build a tech-supported network of independent pharmacies that collectively empowers the small community stores while providing Trxade a profitable enterprise in return.
Trxade uses its proprietary tools for price analytics and supplier independence support to build synergy with superior product data, product offerings, product storage and other services that give the smaller retailers value. In addition to locations accessible to less-populated communities, independent pharmacies often provide a higher standard of care than chain retailers and offer extra services such as same-day home delivery and one-on-one medication counseling.
In facilitating price optimization for independent pharmacies, Trxade helps open channels of distribution and alleviate product shortages and price hikes for pharmaceuticals, relying on the operational transparency and trust that also define its subscribers’ businesses to assure small businesses of their ability to compete.
Transparency is becoming a solution-critical issue as legislative bodies across the country wrestle with the question of how to help patients gain access to critical medications, particularly through the market diversity and accessibility that independent pharmacies can provide. Companies that patients have never heard of – and some that they have – decide what co-pays, premiums and drug options patients will deal with.
Pennsylvania Auditor General Eugene A. DePasquale’s report on the pharmacy benefit managers, or PBMs, that act as middlemen between pharmacists, drug manufacturers and insurance plan sponsors notes that the lack of transparency regarding how PBMs operate might be causing patients to pay too much for medications while PBMs pocket the difference (http://ibn.fm/EoitY).
“Many PBMs take advantage of being able to operate more or less in the shadows, where a complex administrative process allows them to control patient medication outcomes without direct government oversight or review of their practices,” the report states.
Trxade, working from the direction of private industry as legislation works to improve conditions on a state and national level, is leveraging and scaling its model to increase the share of pharmacists purchasing medications, add SKUs and product breadth in local stores, partner with specialty manufacturing and international suppliers, scale its proprietary Delivmeds delivery service nationwide, integrate its products with telemedicine services, and explore M&A opportunities within the drug value chain.
“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 reporting a 129 percent year-over-year increase in company revenues for the second quarter (http://ibn.fm/CiBfz). “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