MEDS - Earnings call transcript Q3 2021 | Scienture Holdings, Inc.

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to TRxADE HEALTH's Third Quarter 2021 Earnings Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be opened for questions. accompanying the call market release the issued press of close today. earnings this was conference at The The quarterly ended report today. the was company's in with which includes of filed for additional operations the SEC quarter the September XXXX results XX, earlier information regarding our HEALTH's Chairman Executive is and Doss, its TRxADE and Suren Ajjarapu; Howard today Chief call Chief On Founder, Officer, Financial Officer. on NASDAQ call and for XX days available MEDS webcast the the under be this the will of website replay The link. company's next includes also website The in-depth supporting company's information. more industry At I'd to to Howard, the Howard turn Doss, is Officer, floor this Financial like time, call the over company's the yours. Chief

Howard Doss

operator, you, XXXX and like I'd for to quarter welcome you our Thank financial call. joining us today. conference third thank you results to

issued posted of today Our press release our announcing on our was the and market after third is results quarter website. close financial

performance date of information XX-K differ filed Exchange forth the company no the actual of These risks, in statements. on business that to statements obligation and our in speak risks, potential and revise cause made including results such operations. continued furnished We press estimate on performance Form of recent to for XX-Q, for uncertainties webcast include, future results and company, Form of we our limited the refer materially the X-K. call press on SEC for risk results the the quarterly are on today's or assumptions. set or webcast. forward-looking the company's from or including COVID-XX to, the including made and Securities and reports third to as assumptions only forward-looking any statements and hereof, may but most subsequently of statements. quarter and the with release statements and report the and documents statements press guarantee release, call on uncertainties operations the factors release that that These annual and file the company the and statements and not Form this not XX-Q Form include Commission These the also subject Statements impact project those to have do future are Please the to such assumes may outlook be

and In non-GAAP will addition, from substitute believe for during isolation addition today's TRxADE's we These supplemental GAAP we non-GAAP results. measures as useful not which considered to measures measures be discuss call in as should webcast, performance. financial are and of in or a

disclosures comparable end for find results can financial period including of the You additional be will GAAP release. of fiscal otherwise comparable Unless the with regarding this our non-GAAP these earnings comparisons our results at press to all reconciliations measures, call in XXXX. stated,

please At I'd session, and to over Suren, Executive yourself the time, the Officer. floor limit call Suren to one question-and-answer turn the follow this to yours. more During than question up. the one no Ajjarapu, like Chief is company's

Surendra Ajjarapu

time platform seeing We Thank return personal pandemic. improvement quarter, drop you, the protective first in off the to strong Howard. initial which saw the were core as sales COVID-XX base third XXXX, the expected our exchange driven TRxADE Pharmaceutical an revenue onset in the equipment recognized of by margin in to

their network a better we to exciting grow, service enabling the end ways Our pharmacy where pharmacy. our their nationwide portion within independent new while have their growing to respective of their large growing them to local focused users, share footprint further customers, to relentlessly continues expand retail wallet loyalty on of members

the offering offering, as a has to continued years Health, footprint but telehealth an data their come, This foundation to leveraging provides believe growth. Our to large manner. an for exciting that established retain grow concurrently own telehealth Bonum national well, drive customers health build can our a we opportunity, retail compliant only to we in subsidiary, care building upon not allowing advanced secure partners of

independent quarter, procurement, patient for independent who experience have results of we what the more we market of conundrum was walk and price are for power and a to bringing optimization digitalizing uniquely own, are, retail for how no the prescription insight engagement. time-inefficient or of financial efficient We with purchasing and platform, web-based business-to-business nation's to journey operate wholesalers I'd TRxADE. the Traditional provide through do independent we potential transparency fair the difficult laborious, nationwide. into extremely pharmacies drug. pharmaceutical or as our drug operational to costs unfavorable and through these drug paying detailed are a around this Before and approximately you others annual design, as pharmacies through in We obtaining as buying those provide in XX,XXX pharmacies national pharmacy Prior to identified you maintain company, proceeded billion the new together with like would incredible independent TRxADE, launch well an terms, market which for inefficiency the payment walk launch pharmacy create the $XX suppliers a process accreted and same selling market process. together pure to delivery the transparent

total on suppliers drug-level our a with up lets that of with pharmacies in believe reduction to this up purchase pharmaceutical transparency, suppliers next of price XX% know economy day price independent some pharmacy savings competing they scale platform costs and at drug terms products. to are trade fair and annual Our and radical delivery. a leads receiving competition from often a among We XX%

prescription of from negative pharmacists distributors, saving fulfilling prices and saves to across a compare hundreds manually unnecessary of loss. platform Our a hours eliminating of annually at having reimbursement labor

TRxADE good partner as if purchasing organizations up us agreements with announced added simple: These from third hundreds a on XX we a majority with XXX alone. X% once. incredible rather which moment. date, as deal GPO on garnering Quality pharmaceutical May is our price pharmacies giving pharmaceutical further smaller volume portion of the GPO X% registered in success impact their a up approximately begun first platform through can not than dozens, are To currently grow seen a to known an Care registered at allow the that outsized XX,XXX We revenue independent buying Visa-like transaction from pharmaceuticals on PayPal spanning purchasing nationwide, our the to platform of may validating exchange, We or members states. paid To business pass attention XXXX pharmaceuticals generic in result of We to on in and fee administrative do, with secure GPO quarter to our on pharmacies will to over of pharmacies growth. an have brand similar them model we new also therefore revenue our have our model. have GPOs members in Our

to to purchase platform. drive on continue We expect the more GPOs the pharmacies products will

to downloads thousands immense as rollout the number in partnerships third the increasing a ProAct, continue independent are year partnerships complement recently, Bonum approximately anticipate application partnerships, patient our Many our most The we where our stores We Kinney and distinct Approximately grow of increase success leverage are we downloads pharmacy driving as XXXX, for national but nationwide in in our as a to our build subsidiary states can brand the Pharmacy to Brookshire into to forward XX,XXX we rates. an offer into XX.X% Bonum these the network complementary approximately we with strategic Drugs, with competency our into Health XX.X% solution. Auto we retail are come patient an rate. partners the total X,XXX leveraged stores Health employers to have In include registration focused adoption of telehealth quarter channels Bonum quarters all coming and launch since numbers Winn-Dixie, to XXXX. of turnkey such reach network. we XXX name relationships Solutions. services up over with BigBuy still expect foods of Mail XX phase, signing strategic ramp and Health, an significant Health move turning our These well to in registration core our telehealth in of had business approximately users as Bonum expect Company, telehealth application in the truly and pharmacy to to performance platform strong Grocery telehealth marketplace platform on SpartanNash technology. broaden Rx of

new our partnership into through We coupon the continue Bonum ability with Health Health records integrate monitoring. Bonum exciting to offering prescription do SingleCare, platform drug solutions streamline virtual medical the and to directly including patient direct-to-patient into a remote electronic laborats patient

are innovative digital and for the health elements while Bonum providing to an organizations way consumers launched passes to vital In gain for Health path we give concurrently streaming accelerated access all care uninsured new that new services, efficiently prepaid to believe alongside addition, recently retail with those with strategy care our paired these ramping us that marketing markets product to We access our enhancements, up health digital partners. an in key into enterprise provide need.

of we the with Conference, recent On Healthcare Annual Investment Chief of to from our burgeoning Howard investor turn the I'd broader quarter Financial Collier and Conference the front, conferences. H.C. company. Fifth to Annual enhancing capital Investor Wainwright goal awareness Officer, highlights to like the Micro proactive of The the walk LD months over Event. attending financial some XXrd Conference, Doss X key markets Benzinga premier were our in through Global call the Main XXXX. to All investor now third

Howard Doss

onetime note allowance $X.XX net bad $X.X loss Bonum to for per diluted compared revenues quarter per relating $X.X pandemic profit last year. to and quarter of part second of an million XXXX $X.X $X.X was development The in revenues receivable XX.X% XXXX with The third its $XXX,XXX, the of debts in the policies of for of million had third compared lower or was was a and third a not result additional $XXX,XXX. outstanding, last result positive continue was or debts the made million primarily gross gross quarter million or XXXX revenues September for XXXX. in the which Prime and to primarily an in for quarter as in of did XXXX. basic margin Revenues XXXX, of in reviewed Net a and million Revenues million EBITDA, the in financial past paid. of of of a increase the million program. due year. sales not the compared company Suren. of of the $X.X PPE result equipment same XXXX and due million third in $XXX,XXX. last The XXXX from Thank outstanding quarter account profit expenses IT less The company TRxADE of year. a of on share the compared of third amount protective totaled year, a was which personnel quarter decrease the Operating same COVID-XX the does Gross was in decrease of last $X.X same Adjusted quarter profit for $X.X quarter of XXXX was you, $X.X million. which million in that bad non-GAAP compared which same allowance an the $X.X as to share were sales XXXX margin The basic receivable single a was executing in non-recurring investments to for second XXXX quarter XX.X% allowances. were to Health, not significant quarter of of to were XXXX, a million result $X.XX $X.X marketing anticipate was quarter in due, XX, the increase has the $X.X profit or in customer negative of in measure

turn Cash back Looking million at Health, due $X.X with of to and mainly XXXX, Cash IT increased decreased XX, for sheet. June as cash equivalents and Passport, of were call million of [Indiscernible] I'll closing Trxade the to Prime. for now Bonum as September the XXXX. Suren remarks. compared balance development MedChecks' marketing and Health XX, spending $X.X the

Surendra Ajjarapu

to and forward In to Thank our new you, Bonum summary, strengths our our we're revenue business partnerships on Howard. exciting strategic leveraging diversifying base Health. core inking exciting focusing drive while

consumers allowing we healthcare for a question-and-answer long-term future whole, incredible all Operator? value I'll value the I proposition sustainable their as operator to to fellow access creating begin look health continue care my compelling I our as building that, think holds we rapid affordable to shareholders. With an Taken to by seeing the exciting building forward of an ecosystem, what are pace it stakeholders. for over turn sessions. operational execution,

Operator

Thank you, sir.

[Operator Instructions]. session We will now the begin question-and-answer

Your first proceed of question. Allen question with comes Group. from the Klee your Please with line Maxim

Allen Klee

Good afternoon.

it drug get the For a have seems much percentage a contracts on of you. revenues organization is to purchasing explain on sales. to could terms the How about could in explain the exclusive group runoff little about could think more little X of more higher are that the wholesalers? partnership, Thank But that? you like and flow And how into big with of opportunity bit a dependent an you profits? you you It that?

Surendra Ajjarapu

where to GPO our revenue, That's Allen. great of But we a can the contract that can to million of correct. have $X.X be that question. so again, because to so absolutely platform. is worth percentage on. their enter primary. month. become their contracts through The into essence, million is our entered To can are consider revenues not pharmacies numbers a million average $XXX,XXX the into in could the Thanks, $X.XX that's process The through after we increasing. per GPO higher goal that pharmacy Sure. program. annual going with program, And you're drugs has yet still these sales going we go buy And And $X they the

Allen Klee

follow-up is Thank you. on the Prime And then my question segment. TRxADE

the said good Administration sales volume you chain past showed challenges Maybe try to on about actually they're generic with the things is some in terms that know on. supply in how to of drugs? improve working And total sourcing. supply of Could I were? And whole You had drug the drug that improvement. you thing with the Biden talk sequential issue the of working they've

thoughts So out. Thank to issue on work maybe this your you. itself going is how

Surendra Ajjarapu

that some percentage are that these trials we supply because to platform might or brands supply to wholesalers still have of the TRxADE of We on because what versus have still continue the Sure. that's have the able And to access may drug. issues seen actually push generics. you chain an more gone Prime see down issues revenue of

elevated supply quarters. and be see we So in will hope issues short to coming chain that continue the

Allen Klee

Thank you.

Operator

question Howard next comes Taglich from with Your proceed Please Halpern of with line question. Instructions] [Operator your the Brothers.

Howard Halpern

the Good guess, is you're Or it Bonum health that that electronic I outside afternoon, own into records guys. Is that platform When incorporating technology developed? the into you talked your about an platform. bringing technology? you've

Surendra Ajjarapu

That's a great Howard. again, question

I As it's report health I under to it vaccination current records. earlier, the about those records is We're but the MedChecks the is COVID -- and considered trying granted put mentioned know accessibility. scenario as all health results, the

Health access to the So health because it’s that be obvious able in you're to we records you'll underneath need when put Bonum talking your doctor. to telemedicine

the our I own you reason that flow doctors. developed doctor under access so using the these carry records, one that's to that's easily Health will So able the in automatically technology other could the health been to MedChecks mentioned, Bonum to keep as blockchain be MedChecks to has

own can on So our that's that health you. your take have you care question, control your so well-being, yes. own your records you Last our Thank intent. own It's technology. of

Howard Halpern

holiday on that? back third just quarter go the norms to results? just going to the looking sort Should And Is due seasonal second compared season recap past dip a at in Okay. that historic my to we to be question is like fourth based have a of quarter revenue history. to

Surendra Ajjarapu

It as the the see historically back historical pointed towards you the will flat quarter. the XX from the from quarter, we sell revenue down of norms, much of end go year. the absolutely have these most pharmacies December as out, pretty to last same to same the of rest the Yeah, take

Howard Halpern

sure. make to Okay. wanted I just

thanks. Okay,

Operator

proceed line with Your question next Weinstein Capital. with your comes Nathan Aegis of from the Please question.

Nathan Weinstein

saw thanks in great taking Hey, margins. good gross question. so improvement afternoon. We for And my much just a

prior maybe you margin raised the the about any how ahead I question? was to in part thanks the think of factors of large might can notwithstanding that progression we mix. were seasonal that in speak But think

Surendra Ajjarapu

Sure.

our sustain. increase to is the the make wallet to try to sources the or have is it's balance per our to margin about we to intent per into continue dip come one month our But margin. you sales, our that we we technology GPO our our that all if platform goods, on. program to that share the the focus so try between platform platform we to of on by But But it cost pharmacies GPO revenues. -- will will gross add a may As have revenue

our So we margin. maintain goods of the cost margin, the but from may sometimes GPO, that to gross drop try pressure that comes

Nathan Weinstein

the enough. appreciate Okay, fair And color.

Operator

from Klee question is question. your next with Maxim proceed Your Please a Allen with follow-up Group.

Allen Klee

Hi.

Pharma to Integra profitability? breakeven it's give the what move to today. segment For not that Can profitable you there the there? us on strategy path update is an is or a And

Surendra Ajjarapu

Sure.

TRxADE our nothing Pharma Integra is the As but Prime.

are when that multiple Prime package the with trying originally, brought in our we the So multiple during model help want pharmacies deal boxes day. coming we invoices, TRxADE is to independent to

that So are payment eaten or our where third our and eventually TRxADE model. in continue we have the to And that But costs one TRxADE TRxADE out to up loss-making infrastructure quarter small infrastructure as having is Prime Prime. very and profitability there to added we and the one Prime away costs is we on try fourth proposition. invoice the started see towards quarter, model that's drive the

Allen Klee

Thank you. One other follow-up question.

Bonum you your a pharmacies? have that pharmacies are own that pursuing with with customers. also an have implementing, penetration your trying How to sell you independent partnerships For bunch get as Healthcare chains are of independent you opportunity it you to but own to have

Surendra Ajjarapu

how help fundamentally, support we our independent to it's launched on So and pharmacies.

in our at all we're it and you make If smaller at to the partnering this $X.X run. other most though with long billion or to Walgreens want is empowering We even sustainability for but the recent our focus the independents. at look Even do purchase XX%. VillageMD independent chains,

that we website, to give We their means constant create that drive patients they them create and brand all our them do so need marketing to help continue websites. help those the their they can we to That pack.

Allen Klee

Okay. Thank you so much.

Operator

I turn to the to like question-and-answer session. end call have remarks. the And closing we gentlemen, Ajjarapu for the reached of would Suren Mr. and Ladies back

Surendra Ajjarapu

Thank growth. would We continuing you, note out forward progress be more earnings from If to your call. operator. reach we were to to of IR than thank to and answer a to unable joining information you our assist. all any XX non-reconciliation please this which who be update information questions, you this of including look our that MZ close Group, also webcast happy under company's disclosed I the available after a on would link. website our like to next on Please ongoing also the And conference for MEDS information the you and the the on webcast, of press for all. more call replay will in be filed financial today. and the days we NASDAQ non-GAAP of call our release or found can financial market Thank regarding you

Scienture (SCNX) 26 Oct 212021 Q3 Earnings call transcript