Pharmacy Services Back on the Radar (MDRX, WBA, RXMD, CVS)
The big step from here is an improvement and normalization in terms of our relationship with healthcare. But, because of what we have all endured through the pandemic process in recent months, and the months ahead, many changes that may have occurred in any course over coming years have suddenly happened all at once. One upshot of that process is the potential for interstitial healthcare stocks (pharma, pharmacy services, prescription data, medical research, etc) to become much more profitable as we link up the needs of healthcare consumers with 21st century technology. With that framework top of mind, we look at some of the most interesting names that fit this bill here, including: Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), Walgreens Boots Alliance Inc (NASDAQ:WBA), Progressive Care Inc (OTCMKTS:RXMD), and CVS Health Corp (NYSE:CVS). Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) bills itself as a company that provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. The company also just announced a new deal with MSFT that we will cover below. MDRX offers electronic health records (EHR), connectivity, private cloud hosting, outsourcing, analytics, patient engagement, clinical decision support, and population health management solutions. The company operates in two segments, Clinical and Financial Solutions and Population Health. Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) recently announced Carol Zierhoffer has been named to the Board of Directors of Allscripts (NASDAQ: MDRX) Healthcare Solutions, Inc. A former executive at engineering and construction company Bechtel Corporation, Zierhoffer has more than 30 years of experience in information technology. She will serve as a member of the Audit Committee of the Board. Most recently and until her retirement in October 2019, Zierhoffer served as the Senior Vice President and Global Chief Information Officer at Bechtel, where she oversaw the company’s Global Information Systems & Technology organization. Zierhoffer’s responsibilities included Bechtel’s business and technology solutions, cybersecurity, infrastructure and operations, innovation, emerging technology and knowledge management for the company’s business lines and projects worldwide. The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 12% in that timeframe. Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) generated sales of $416.7M, according to information released in the company's most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -7.6% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($212.1M against $1.2B, respectively). Walgreens Boots Alliance Inc (NASDAQ:WBA) trumpets itself as a pharmacy-led health and wellbeing company that operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The company’s Retail Pharmacy USA segment sells prescription drugs and an assortment of retail products, including health, wellness, beauty, personal care, consumable, and general merchandise products through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services and mail services; and manages in-store clinics. Walgreens Boots Alliance Inc (NASDAQ:WBA) just announced that contactless same-day curbside pick-up is now available at more than 8,600 participating stores nationwide. In as little as one hour, Walgreens customers can conveniently order and pay for select household essential and health & wellness products online and then pick these items up curbside at their selected store. "We are always looking to provide our customers with safe, easy and convenient contactless shopping options to get the retail items they need, whether that’s via same-day delivery through our collaborations with DoorDash and Postmates, same-day pick-up with our order online pick-up at drive-thru, or now via our newest digital enhancement, order online pick-up at curbside," said Stefanie Kruse, vice president, digital commerce and omni-channel at Walgreens. The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 2% in that timeframe. Walgreens Boots Alliance Inc (NASDAQ:WBA) pulled in sales of $34.6B in its last reported quarterly financials, representing top line growth of 0.1%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($943M against $26.6B, respectively). Progressive Care Inc (OTCMKTS:RXMD) promulgates itself as “a personalized healthcare services and technology company”. Do a little digging and you find this is a company that has been showing strong top and bottom-line growth in the regional pharmacy services space, but is now increasingly set to expand operations into telemedicine, ecommerce, and a range of scalable growth strategies while maintaining its footprint in the Florida pharmacy services space. The company has put up impressive numbers, with consolidated monthly gross sales across all locations during May totaling $3 million, representing year-over-year growth of 67%. It was 54% the month before, and 105% in March. And it was even better before the pandemic hit. Progressive Care Inc (OTCMKTS:RXMD) just announced the expansion of the Company’s PharmCo branded pharmacy operations and presence in the Orlando metropolitan area. According to the release, the Company is moving out of its current Orlando pharmacy location, which is a 700 square-foot mini-pharmacy operating under the “Five Star” brand designation, to a 3,700 square-foot full-size pharmacy that will open under the PharmCo brand designation. The Company is also very pleased to report that this move, which represents an expansion in property size of more than 400%, will not increase monthly lease costs. Once completed, the move will allow for a dramatic expansion in the services and products offered in the Orlando market, including the full scope of PharmCo pharmacy goods and services, as well as therapy management, patient management, cost management services, and rapid-results testing services (COVID-19 IgG/IgM) as authorized by the FDA under its Emergency Use Authorization (“EUA”) guidelines for conducting SARS-CoV-2 antibody presence and COVID-19 infection diagnosis testing. If you're long this stock, then you're liking how the stock has responded to this and other recent announcements. RXMD shares have been moving higher over the past month overall, rallying about 70% on strong action with a consistent bid in place. Progressive Care Inc (OTCMKTS:RXMD) generated sales of $9.1M, according to information released in the company's most recent quarterly financial report. That adds up to a monthly year-over-year growth rate of 62% on the top line as of the Company’s last monthly performance update. CVS Health Corp (NYSE:CVS) is a health services company that offers plans in the United States. Its Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, retail pharmacy network management, mail order pharmacy, specialty pharmacy and infusion, Medicare Part D, clinical, disease management, and medical spend management services. The company's Retail/LTC segment sells prescription drugs and general merchandise, such as over-the-counter drugs, beauty products, cosmetics, and personal care products, as well as provides health care services through its MinuteClinic walk-in medical clinics. Its Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, medical management, Medicare plans, PDPs, Medicaid health care management services, workers' compensation administrative services, and health information technology products and services. CVS Health Corp (NYSE:CVS) said on recently that it would require customers to wear face coverings while shopping at its U.S. pharmacies, joining a host of retailers in the country in their push to curb the spread of the COVID-19 pandemic. Retailers including Walmart Inc, Kroger Co and Kohls Corp have already made it compulsory for shoppers to wear masks, which is widely accepted as one the most effective ways to keep the virus in check. The stock has been acting well over recent days, up something like 3% in that time. Shares of the stock have powered higher over the past month, rallying roughly 14% in that time on strong overall action. CVS Health Corp (NYSE:CVS) generated sales of $66.8B, according to information released in the company's most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -0.1% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($12.7B against $59.6B, respectively). Read the full article
