MEDS - Earnings call transcript Q2 2022 | Scienture Holdings, Inc.

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to TRxADE HEALTH Second Quarter 2022 Earnings Conference Call.

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

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

Janet Huffman

Thank joining website. call. results market after the to second like you, our XXXX press thank today Operator, our financial was issued and quarter and our you financial A us today. XXXX quarter of to on you for close release I’d posted conference is results announcing welcome second

release These furnished are or for will risks, speak subject obligation Statements do and revise that are call and estimate project date on also this of performance assumptions. such as have company assumes statements not made statements in law, or and the be of may of guarantee and performance the These future We to call include no company. the webcast. any the release, the statements statements. except These or press X-K. Form the by our only required statements, operations that future as hereof to uncertainties, forward-looking press SEC outlook made limited to forward-looking statements webcast on and company to results include not but today’s

the please risk to materially or may report in subsequently our report cause XX-Q X-K. most with periodic factors from recent our on Commission. annual the report report assumptions press on information forward-looking results actual but that not include, report are recent the file These we current most filed Form recent For to and most limited Exchange Securities uncertainties any included and to and documents quarterly our release, documents quarterly and other differ and refer on statements, risks, Form

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

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

portion more Executive limit and like today’s this question-and-answer please I’d to Ajjarapu, the Officer. to At of Suren? company’s the the Chief yourself Suren no over call, During question call one than turn to time, one follow-up.

Suren Ajjarapu

you, Thank Janet.

return base to to We our in core see platform. XXXX pharmaceutical and improvement to revenue continues market continue the TRxADE revenue

retail pharmacy. Our grow better end users respective nationwide our support we their large focus that continues them their growing registered products loyalty footprint new users, relentlessly local to customers, to of their technology to and as developing service strengthening ways the on to network enable exciting

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

and Our We with receiving fair often payment pharmacies platform this fair a day costs competing and price know with of total economy pharmaceutical purchase on leads that they’re up of to XX% independent radical let drug a some delivery. suppliers among believe pharmacies drug up certain annual next players products. scale and XX% in terms a price competition savings to level transparency, reduction from

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

Our in these an pass business to and revenue generic to model. PayPal similar model. platform paired pharmacies administrative up pharmaceutical on through To-date, validating our X% nationwide, up seen brand of our the and the simple, to have of garnering is X% like the prices fee model where a attention pharmaceutical buying or incredible independent we from pharmaceuticals success Visa that

members. Our currently registered XX,XXX TRxADE over has platform

the members half compared of quarter is represent in for XXX XXXX XXXX itself. XXXX, new quarter first the the members XXX in approximately registered New second to XXX the half of added for members This new and with XXX XXXX second XXXX. in of the first

of XXXX includes platform the on platform in quarter same processed the our of metric growth sales XXXX. compared exciting increase Another second in TRxADE to volume across quarter a XX% our

second platform Prime XXXX XXX%. and quarter the million of the reflects also XXXX. also second revenue reflected the the sold in quarter quarter same quarter in TRxADE XXXX quarter. increased approximately a to number the Prime in growth quarter XXXX XX% in second compared the number of of of XXXX for the TRxADE in by increase XXX% revenue to XXXX. orders second increases exciting experienced increase also the of units in compared a Our to has TRxADE Comparing $X.X processed

The to a offering, partnerships add their the diversify independent Health top and medication this growth with expect of distribution renews GALT a products July the the TRxADE Prime Pharmaceutical a agreement multi-source to the will The XX Prime our in GALT catalog Pharmaceuticals. in to XX%. single-source partnership TRxADE part our with also and proffered TRxADE agreement The products pharmacies. our We mission independent access pharmacies helping product the acts of of network. to continue XXXX. commitment GALT with announced GALT as Pharmaceuticals our members manufacturer directly to of

March On to presented I initiative the Growth the capital continue Virtual market we healthcare Invitational taking front, Conference improving on the Micro LD and held attended held Xth. Maxim June on be at I’d investor the technology Xth on financial June also XXth. panel turn through our our We through of of Huffman, some to second to Officer, company. like enhancing broader call goal awareness the highlights XXXX. over from to the key walk for quarter with attended conferences now Chief Financial Janet the

Janet Huffman

Suren. Thank you,

due generated and year. discuss compared revenue to million XXXX the the quarter quarter $X.X primarily The of second last in increase by in of to to revenue gross million, the to was the $X.X TRxADE second Prime. results. XXXX. revenues quarter TRxADE Let’s compared platform profit in Prime, same to in revenue Revenues and of $XXX,XXX $X.X XXXX, million TRxADE TRxADE increase same Due increase XX% second for XXXX quarter to period generated our increased platform for by the

in as compared XXXX, $X.X quarter our $X.X Operating of to As XX% recognized million these primarily of decreased periods expenses in second to in negative loss Adjusted XXXX. $X.X The measure non-GAAP quarter a a diluted compared last in second for to to were June in XXXX Net the the share or a outstanding, significantly negative operating EBITDA, XXXX million same million, year. for last to million for financial XXXX. due the for revenue, comparable a to share quarter profit on as diluted quarter million inventory compared second same and the percent $X.XX quarter and the per the expense of $X.X quarter loss quarter or compared was in the the was $X.X second XXXX, same million increasing per gross ended to XX, XXXX is XXXX. XXXX, XX% year. expenses quarter in $X.X million decrease outstanding $X.XX of basic investment basic compared in $X.X of

With of cash XX, initiatives, December balance as Looking XXXX, remarks. fulfill our as in that, for our The expenses, back and at sheet, with and to as well to the mainly as million increased cash quarter decrease XX, IT investment of will $X due June compared and third for in legal XXXX. that expenses was closing salaries the a inventory cash turn in million SOSRx, administrative order Suren $X.X sales our our will XXXX. call wages, I equivalents cash were prepayment of other

Suren Ajjarapu

Janet. on which you, we’re drive In while core strategic our Thank partnerships summary, business, to base. is new our our exciting diversifying forward revenue focusing marketplace,

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

Operator

And Instructions] Allen first our proceed from [Operator question. of Klee question sir. comes with line Maxim you, with your Thank Please Group. the

Allen Klee

each us how you we’ll have for growth you Can rest think quarter sense sequential XXXX? Good you give of revenue for the afternoon. that of do a --

Suren Ajjarapu

Allen. some expense. still the as expenses the supply of transportation as We you, all, in That’s continue see an chain, towards charges. First well the thank in to issues

of we sequential two having we’ll the little but towards see in a feel a So that quarters, sequential revenue be growth yes. confident bit next we the growth,

Allen Klee

you the think Great. stay year due a did the, at should expanding. Is the or your -- in the do with TRxADE of gross about believe should we are over that were margin or you they improve gross the to at bit that? rest Prime -- margins, how believe should I little that that level of now And then terms hit they

Suren Ajjarapu

Janet, that question? you do to want take

Janet Huffman

problem. Sure. Not a

well. when a You’re a the side margin from are right. and some there $X increased not so the there grow COGS see of some on last margin because COGS and as right think see the Gross the we adjustments move as two will sustained platform IPS the we did decrease I will increased from gross We’ve year. of that Yeah. revenue, percent we quarters made perspective are we -- revenue through

Allen Klee

on the general GPOs that Any partnership SOSRx on? the update working your you’re also -- purpose Okay. and on

Suren Ajjarapu

manufacturer. are took to back in of deal -- a We Yeah. we It even our The the SOSRx months technology -- pitching February. the signed couple just started. as to partnership us

won’t the revenues of probably see the first year next quarter any we the try see Hopefully, So of revenues. rest we’ll probably, to year. some

That’s far are growth. more membership the the see as concerned, GPOs continues we’re add what As you members. to

first I quarter, the XXX, and members think, earlier, plus second I first the six quarter as overall that months. mentioned XXX the we’ve in added odd itself

lot GPO that’s joining the a pharmacists So of platform. you are where see our

Allen Klee

back you Thank the queue. jump all. I’ll in

Operator

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

Howard Halpern

Good afternoon, guys.

Suren Ajjarapu

Good afternoon, Howard.

Howard Halpern

maybe kind of personalized, little could do what guess, on of pharmacies the provide with for more there kind that GALT seeking other you a distribution? If I are agreement recently opportunity GALT color and or that with bit announced other is products distribution and business you to

Suren Ajjarapu

So base manufacturer customer right? Yeah. access pharmacies bring or main -- that to our main The specialty independent is drugs independent -- trying these a pharmacies, our have. don’t product as we’re rather to

will relationships the those higher give and from then place that So the access reimbursements. the in to drug margin them they the can get first

it’s to pharmacies. bringing independent to big So or wholesale manufacturer reason the direct a that the lose a direct the and that’s through bring we’re going the wholesalers margin big versus manufacturer chain trying my

Howard Halpern

that measures as And just see are are some the operating in in we range terms going goes cost yeah, improve expenses, that, a foreseeable million $X.X future? we of or little I cutting guess, to for time Okay. bit with by

Suren Ajjarapu

similarly facing their increasing have inflation salaries. leaving care As employees you by issues, and to stuff. threatened by so their are we we of our the get aware all are the Otherwise, industries take

at those improvements see I see that So sustainable probably next three able in we million may level, the level, probably, to that in two $X.X expenses. some quarters XXXX, to

Howard Halpern

have just rapidly Prime talked grows one operating how as to margin question, fairly about or the you any growing your but relatively offering with expenses Prime operating is, And the Okay. and do gross -- grows fixed? you additional as you that expenses really or are Prime add

Suren Ajjarapu

Howard. question, excellent Well, an that’s

after go electronic, we our Now I the we’re shipping except want platform. on the technology think charges, to because focusing

directly the do like shipment the the would base rebuilding we to to costs. shipping instead So to DCs of drop is, customer where from try the

So…

Howard Halpern

Yes.

Suren Ajjarapu

we see the … except margin to going cost, higher and expenses try should the see forward product we sustainable on there.

Howard Halpern

Okay.

the up good Keep guys. Okay, work.

Suren Ajjarapu

Thank you.

Operator

question our line the of Allen next Group. Klee with Please And with your proceed from come Maxim question.

Allen Klee

Hi.

terms in your on changes the sales of for platform, stays give in like, -- any generic, mix? of the of were Just total the can of mix volumes any terms you’re the there if at the generic that commentary you percent TRxADE doing that in

Suren Ajjarapu

That’s another one. Allen. Yeah.

I think chain that from most pressure are parts other the here, as locally either world. of still India issues drugs generic or the the globally products of the supply pushing available branded on come the

that of trend, trend, flowing same generic brand I next So XX six our less through hope platform. more see same we we months are versus to months, the see a the

Allen Klee

you. Okay. Thank

Operator

have we question-and-answer any of call to over for the back end the I’ll closing reached session. Suren the turn And remarks. now

Suren Ajjarapu

Thank you, the unable all to to assist. I’d We call conference progress you to like we any our Investor and please Relations continuing look ongoing If to more be for our also your reach happy department. of answer out growth. Operator. you than you earnings on update to call. of thank to questions, We’ll were -- forward joining

who For available call that have for in website And progress, link. a on close this release, or on the market the Thank you the under will -- you press filed webcast in the which reconciliation can days MEDS next our information replay releases of more after company’s XX remember this non-GAAP may of financial the of NASDAQ: and information the any the call webcast be call during found financial disclosed be regarding releases the we all. today. joined of

Operator

today’s time. and you concludes Thank disconnect this may you lines and at a your great day. And conference have this

Scienture (SCNX) 26 Jul 222022 Q2 Earnings call transcript