Progressive Care Inc (OTCMKTS:RXMD) On The Verge Of A Breakout

Progressive Care Inc (OTCMKTS:RXMD) is an interesting story on the OTC markets. While most lack revenues or a significant business, that's not the case with RXMD. The company reported over $13 million in revenues last year. Yet, its market cap is just $10 million based on roughly 350 million shares outstanding. When we saw this, we knew we had to put our value investing hat on and take a closer look at RXMD.Progressive Care Inc., through its subsidiary PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals specializing in health practice risk management, compounded medications, the sale of anti-retroviral medications and related medication therapy management, and the supply of prescription medications to long term care facilities.The pharmacy filled nearly 180,000 prescriptions in 2015, which is a 28% increase over last year. During the fourth quarter, PharmCo filled over 48,000 prescriptions resulting in record revenues for the quarter at $3.9 million. December marked the strongest month for the company since inception with over $1.4 million in net pharmacy revenues.In 2015, PharmCo brought in over $13.5 million in net pharmacy revenues. This is almost a 24% increase over 2014. Revenue growth accelerated during the final month and quarter with over 61% and 35% increases in revenues, respectively, when compared to the same time periods last year. The compounded medication division is the primary driver of revenue growth in addition to major additions to company's marketing team and expanded marketing campaigns with large clinics and physicians networks.While these are impressive numbers, what we like most is that the company is cleaning up the mess created from prior management. RXMD has paid off all of its debt and has moved to the OTC Pink Current Information tier of listed companies which is the highest trading tier on the OTC Pink marketplace. Over the past year, the Company has been diligent with filing all disclosure documents and financial statements with OTC Markets in a timely manner. As a result the company will now trade without a yield sign for the first time since 2013. Achieving the highest tier in the OTC Pink marketplace will bring significant benefits to the Company and its shareholders by assuring the public that comprehensive information on the Company's operations and financials is readily available. This goes a long way in instilling confidence in the marketplace.

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Last month, the company issued 282,275,000 shares of common stock to eliminate over $1.9 million in aged debt off of its balance sheet. RXMD estimates that of these shares approximately 12,000,000 shares will be returned to treasury. As of December 9, 2015, total common stock issued and outstanding was 352,043,045 shares. This number is net of a 1,718,000 share adjustment as these shares are beneficially owned by the company through PharmCo, LLC. The total number of shares that are not beneficially owned by insiders or affiliates was 306,833,938.Going forward, there's a lot to look forward to from RXMD, especially with new CEO Shital Mars in charge. This year, management's goals are to expand the current operation to include a close-door pharmacy facility, increase filled prescription counts to 21,000 per month by December 2016, increase annual overall sales to $16 million, and to expand the pharmacy through establishing new locations or through mergers/acquisitions with similarly positioned independent pharmacies.The last part concerning mergers and acquisitions is what has us most excited. There exists the opportunity for a company like RXMD to roll up other specialty pharmacies. By doing so, it will make RXMD itself an acquisition target by one of the big players like Walgreen's (NASDAQ:WBA) or CVS (NYSE:CVS). As CEO Shitah Mars said:

"While I am supremely happy with the progress we have made over the past year, I know that this is merely a fraction of what the company is capable of in the future. I am excited about bringing the company into 2016 with an ambitious resolve to accomplish major goals and realize our utmost potential. Our shareholders should take this time to share in the company's joy, but ready themselves for major growth and expansion in the coming year."

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We like the specialty pharmacy business. It's an industry ripe for consolidation. RXMD just needs to execute on its business plan. From the looks of things and the strategy being formulated by CEO Shitah Mars, it looks like that is going to happen. We will be updating Insider Financial with the latest developments on RXMD. Be sure to sign up today to get our latest updates!

Disclosure: We have no position in RXMD either long or short. We have not been compensated for this article.