OPTIMIZERX CORPORATION (OPRX) research, news, and more from GeoInvesting

Company description

Wed, 02 Aug 2017 16:46:36 GMT

OptimizeRx Corporation is a technology solutions company. The Company focuses on the healthcare industry. The Company connects patients, physicians and pharmaceutical manufacturers through technology. The Company's solutions provide pharmaceutical manufacturers a direct to physician channel for communicating and promoting products. It provides healthcare providers a means to provide sampling and coupons without having to physically store samples on site. The Company's principal products and applications include SampleMD, OPTIMIZEHR and OPTIMIZERx.com. SampleMD is a virtual Patient Support Center. OPTIMIZEHR is a consulting practice focused on educating and working with pharmaceutical manufacturers on identifying, formulating and implementing new electronic prescribing (eRx) media strategies for promoting their products. OPTIMIZERx.com is a portal to healthcare savings for patients to centrally review and participate in prescription and healthcare savings and support programs.

Research

Tue, 06 Nov 2018 16:51:56 GMT

Optimizerx Corp (OTCQB:OPRX) ($17.08; $198.6M market cap), one of the nation’s leading providers of digital health messaging for the pharmaceutical industry, announced Q3 2018 results:

Sales of $5.4 million vs $3.1 million in the prior year
EPS of $0.02 vs loss of $0.06

“In Q3, we realized our eighth consecutive quarter of revenue growth and second consecutive quarter of profitability through adding new pharmaceutical brands, growing our digital health messaging revenue and expanding our distribution channels,” said OptimizeRx CEO, William Febbo.

Subsequent to the quarter, our strategic acquisition of CareSpeak Communications allows us to complement and diversify our revenue streams while continuing to scale. There are immense resources being poured into quality improvement and value-based care, all for the simple reason that it improves outcomes and reduces costs for all stakeholders. By adding CareSpeak’s complementary capabilities to our platform, we extend our ability to engage doctors and patients, and improve health. CareSpeak allows us to further bridge the critical communication gaps between pharma, healthcare providers and patients.

For the remainder of 2018, we plan to continue expanding our reach to physicians, pharmacies and patients, and bringing new solutions to our existing clients to capture more budget per pharmaceutical manufacturer. As we continue to demonstrate high ROI from the marketing spend of our pharma clients, we expect increased adoption of our digital health platform in cloud-based EHR channels, hospital systems and ultimately by potential clients.”

OPRX was added to our Multi-bagger portfolio in April 2018 and shares are up 200% since that time.

Research

Wed, 17 Oct 2018 14:55:35 GMT

Optimizerx Corp (OTCQB:OPRX) ($15.40; $179.2M market cap), one of the nation’s leading providers of digital health messaging for the pharmaceutical industry, today announced that it has acquired CareSpeak Communication, a leader in interactive health messaging for improved medication adherence and care coordination.

“With CareSpeak, the company expands its reach to communicate directly to patients, resulting in greater medication adherence, persistence and affordability. This strategic acquisition follows a year of record growth for OptimizeRx, diversifying its revenue streams and scaling its current solution.”

CEO William Febbo stated:

“We are excited to join forces with Serge and his team. We see a great cultural fit given our mutual mission to transform communication across the provider-pharma-patient care continuum. This investment allows us to drive additional opportunities for revenue growth, extending our reach within our existing client base as well as enhancing our digital platform to facilitate more scale.”

There are no details of the transaction in the press release, but we are reading through the 8k for the financial details.

Research

Mon, 17 Sep 2018 15:10:20 GMT

Optimizerx Corp (OTCQB:OPRX) ($16.50; $192.0M market cap), one of the nation’s leading providers of digital health messaging for the pharmaceutical industry, is now on trade watch. Shares of OPRX have been on fire lately. After a run from $8 to $12 shortly after the company effected a 1 for 3 reverse split, shares have risen from $12 to $16.50 over the past week. On Friday after the close, we noticed an 8-K filing that included “change in control” verbiage.

“As a universal and new change, the Company’s bonus plan was amended to include a change of control bonus ranging from $0 to up to $750,000, depending on the transaction price, for each of these four executive officers, if a change of control transaction occurs in either 2018 or 2019.”

For those unfamiliar with the change in control language, it typically applies to a company being sold to, or merged with, another entity. This amendment to employment agreements would allow for bonuses to be distributed to current executives if a change in control were to happen in either 2018 or 2019.

While this certainly does not guarantee that a Company will be acquired, we have noticed in past cases that such filings have been precursors to these kinds of transactions.

In fact, we were able to take advantage of a similar opportunity in 2009 with Merrimac Industries Inc (NYSE AMEX:MRM), one of our GeoBagains where we noticed an 8-K regarding a change in control. We were able to add to our position because there was little reaction to the news. Roughly one week later, the company announced they would be acquired.

Research

Thu, 03 May 2018 15:36:52 GMT

Optimizerx Corp (OTCQB:OPRX) ($2.07; $60.6M market cap) the nation’s leading provider of digital health messaging for the pharmaceutical industryannounced Q1 2018 results:

Sales of $4.1 million vs $2.2 million in the prior year and ahead of analyst estimates of $3.2 million
Non-GAAP EPS of $0.01 vs loss of $0.03 in the prior year and ahead of analyst estimates of a loss of $0.02

Quotes from management:

“In Q1, we achieved our sixth consecutive quarter of revenue growth as our topline increased 91%,” said William Febbo, CEO of OptimizeRx. “This strong performance was driven by growth across all of our messaging products as well a brand support. The sequential growth also means we bucked the typical seasonal downtick in Q1, which was largely due to exceptional execution by our sales team and account managers…

...Driven by the launch of additional channels, brands and products, as well as the ongoing growth in our nationwide EHR network, we expect continued revenue growth in 2018. While we are focused on the top-line, we are also carefully managing our expenses. Together, we believe this will keep us on track to achieving profitability on quarterly basis by the end of the year.”

Reverse split and NASDAQ uplist:

“We’ve received the approval of our board for a reverse stock split in order to meet the minimum price requirement for NASDAQ. It will be a one-for-three, and we expect to uplist within the next couple of months. We believe a NASDAQ listing will help broaden our shareholder base by increasing our appeal to both retail and institutional investors. We also expect it to provide investors with greater liquidity and ultimately increase shareholder value.

Private Placement:

The company also announced it has entered a $9 million private placement. It will issue 5 million shares at $1.80. Comments regarding this private placement:

“Our record Q1 results demonstrate the strong momentum in our business, including growth in pharma brands, channel partners, and healthcare providers on the OptimizeRx network,” said OptimizeRx CEO, William Febbo. “We expect to use some of the proceeds from this capital raise to fund additional sales and channel investments in our core ambulatory market, where we continue to demonstrate high ROI for our pharma clients’ marketing spend. It will also support our further expansion into the hospital channel, which represents a significant growth opportunity.”

In our February 28, 2018 email we stated we were eyeing OPRX for our multibagger portfolio due to strong Q4 2017 results and our positive encounters with management at several conferences. While we never pulled the trigger, the stock seems to be moving in the direction of becoming a multi-bagger.

Research

Mon, 23 Apr 2018 14:49:30 GMT

Optimizerx Corp (OTCQB:OPRX) ($1.90; $55.7M market cap) the nation’s leading provider of digital health messaging for the pharmaceutical industry announced it has partnered with EvidenceCare, a Nashville-based provider of a cloud-based clinical decision support (CDS) tool for individual clinicians, hospitals and clinics.

Quotes from management:

Our partnership with EvidenceCare represents a major milestone in terms of expanding our distribution of digital health messaging beyond the ambulatory setting and into hospitals,” noted OptimizeRx president, Miriam Paramore. “It also means we will be able to integrate for the first time with industry-leading EHR vendors that have a strong presence in the hospital space. Together with EvidenceCare and these EHRs, we increase the likelihood that healthcare providers select the best medication for their patients, while helping patients save money and be better educated about their prescriptions.”

In our February 28, 2018 email we stated we were eyeing OPRX for our multibagger portfolio due to strong Q4 2017 results and our positive encounters with management at several conferences.

The tough part of the analysis here is that the stock does not look - and has not looked - cheap based on traditional valuation measures. However, we love what the company does and the CEO, William Febbo, has a very impressive track record of building companies and getting them sold. We are going to add the stock to our multibagger portfolio, with the caveat that we don't think the stock is undervalued at these levels, but could reward long-term shareholders.

As a reminder, we define our multi-bagger portfolio as being:

“...for investors willing to hold through volatility caused by market gyrations or operational hiccups in companies we think have the right management teams in place or share structure to increase several times over the next 3 to 5 years.”

Research

Wed, 28 Feb 2018 15:23:11 GMT

Optimizerx Corp (OTCQB:OPRX) ($1.44; $42.1M market cap)

We are looking at OPRX as a possible candidate for our multibagger portfolio, one of our folios that focuses on longer term holdings. After several positive interactions with management at several conferences, and given the pedigree of the CEO (William Febbo), we are considering adding OPRX to the portfolio as we continue our due diligence. We would like to thank one of our premium members, Graham Jervis (@JervisCapital) for bringing this idea to our attention.

Yesterday, OPRX announced Q4 2017 results:

Record sales of $4.0 million vs $2.3 million in the prior year period
Net loss of $0.2 million vs net loss of $0.4 million in the prior year

Quotes from management:

“In 2017, we continued to build upon this successful approach by introducing our own proprietary brand messaging system designed to expand our ability to deliver key clinical messages in addition to financial support. We launched this new system with an EHR channel partner in 2017, and plan to launch it with other EHRs in 2018...

...At the end of the year, we purchased all available 2018 inventory from Allscripts for its LogRx brand messaging product, as well as its Infoscripts messaging service. We believe brand messaging represents a significant growth opportunity for us. We see this activity ramping up more quickly in 2018, with significant growth generated by this channel.”