- Trxade targeting all 24,000 independent pharmacies across the U.S., with total purchases of $93 billion a year
- Company’s online platform currently has about 11,500 pharmacies as registered users and grows by roughly 100 users every month
- Proceeds from IPO to be used as working capital and to fund future acquisitions
Business-to-business pharmacy services supplier Trxade Group Inc. (OTCQB: TRXD) intends to raise $5 million in an IPO of its common stock on Nasdaq, according to a Seeking Alpha report. The net proceeds will primarily be used as working capital and for general corporate purpose, as well as the possible acquisition of other companies, technology and products, the article says, underlining that the final amount raised under the IPO may differ (http://nnw.fm/RWl92).
Seeking Alpha also notes that Trxade Group is profitable and has grown from a small revenue base but warns against the risk of an unfocused approach given the company’s disparate operations that face tough competition. Trxade’s main focus is to operate an online pharmacy B2B marketplace for pharmaceutical products and other business segments.
Founded in 2010, Trxade Group is comprised of three synergistic operating platforms; the B2B trading platform, licensed virtual Wholesale and Mail Order Pharmacy capabilities including the mobile app DelivMeds, as well as the newly acquired assets of Bonum Health, a Telemedicine Platform. Delivmeds makes it possible to deliver dispensed prescriptions on the same day.
Trxade’s proprietary web-based e-commerce platform enables trade among pharmaceutical, accessory, and service buyers and sellers. The platform currently has about 11,500 pharmacies as registered users, through which it reaches between 12 million and 15 million patients. The company aims to reach most, if not all, of the estimated 24,000 independent pharmacies currently operating in the U.S., with combined pharmaceutical purchases of $93 billion per year. The U.S. pharmaceutical industry, which is worth $330 billion, is comprised of 1,500 state-licensed suppliers and more than 65,000 pharmacy facilities, 24,000 of which are independent.
Trxade’s trading platform offers users a series of measurable benefits, including significant discounts that contribute to a 7-10 percent decrease in the annual purchase expenses for pharmacies; no registration and transaction fees for pharmacies; a simple and intuitive interface that helps pharmacies compare prices and select the best offer with guaranteed security for purchases and payments.
The U.S. health care market is currently valued around $4 trillion. As the general population ages, further growth is expected, which in turn will have increasing impact on consumers as out-of-pocket expenses rise as well. Medication costs are expected to increase faster than the inflation rate and the general health care and variable drug pricing provides great opportunity for the company’s established model of price visibility.
Trxade aims to lower prescription drug costs by attacking the inefficient value chain, delivering drugs directly to independent pharmacists and consumers, and offering efficient purchasing and price transparency. Its integrated drug procurement, delivery and healthcare platform also delivers increased profit margins.
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://nnw.fm/TRXD
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