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OptimizeRx Corporation (OPRX)
Q4 2017 Earnings Conference Call
February 27, 2018 4:30 PM ET
Will Febbo – Chief Executive Officer
Doug Baker – Chief Financial Officer
Eric Martinuzzi – Lake Street
Ron Chez – Private Investor
Harvey Poppel – Poptech, L.P.
David Harrell – OptimizeRx
Please standby. Good afternoon, and thank you for joining us today to discuss OptimizeRx’s Fourth Quarter Ended December 31, 2017.
Previous Statements by OPRX
» OptimizeRx's (OPRX) CEO William Febbo on Q3 2017 Results - Earnings Call Transcript
» OptimizeRx's (OPRX) CEO William Febbo on Q2 2017 Results - Earnings Call Transcript
» OptimizeRx's (OPRX) CEO Will Febbo on Q1 2017 Results - Earnings Call Transcript
We also like to remind everyone that today’s call will be recorded and will be made available for telephone replay via instructions in today’s press release in the Investors section of the company’s website.
Now, I’d like to turn the call over to OptimizeRx CEO, Will Febbo. Please go ahead, sir.
Thank you very much, Beckie, and good afternoon everyone and thanks for joining us for the call today. Well, as you’ve seen from the press release, during the fourth quarter we made a lot of progress both financially and operationally as we continue to build upon our foundation, we’ve been talking about for the last few quarters.
I’m happy to report and I’m very happy to report net revenues was up 75% to a record $4 million in Q4 and we maintain a healthy balance sheet with a slight increase in cash from operations. This record performance was driven across the board from our core solutions of financial messaging to our new brand messaging product that we launched in the first quarter of 2017.
We also added channel partners and continue to invest in our team to scale our business and expand our digital health platform. We’re also developing some exciting new solutions for our clients, which will roll out over the next six to 12 months with revenue attach to them. In short, our platform is becoming a very powerful resource for clients at the point of care when physicians are physically with their patients.
I wanted to give you some additional perspective before we get into the numbers with Doug. I’d like to talk a little bit about why our platform digital health solutions have become valuable to pharma manufacturers, doctors and patients and why our opportunity in particular in this space is so large and growing. Let me just post a question, can you imagine spending billions of dollars on developing the drug and then not being able to communicate or educate to your clients on it’s clinical benefits and their patients on various adherence methods.
This is the predicament in which many pharma companies find themselves today. As we all know the health care market has been undergoing many changes. What most people don’t know however is it’s becoming increasingly difficult for pharmaceutical companies acting through their sales reps in the field to get in front of physicians they want to reach. In fact, because of the Sunshine Act and similar reporting requirements more than half of the hospitals these days don’t let them in the door. Further nearly 60% of the doctor offices now limit or even ban pharma sales reps or samples they offer.
While samples are still important OptimizeRx solutions address the fact that many health care systems and doctors are looking for easier, more effective ways to provide affordable access to medication and improve patient adherence to prescribe medication. This is a huge problem in this space and our platform squarely addresses it. Physicians are also spending more than five hours a day interacting with the electronic health record, the EHR, viewing test results, logging notes, issuing ePrescription.
In 2017 alone more than 2 billion ePrescriptions were transmitted from doctor to pharmacy. This amazingly high number reflects how now about 85% of physicians are using ePrescription as their preferred way to prescribe. In fact, most hospital systems are requiring health care providers to use it. The number also reveals how the adoption of ePrescription is accelerated over the last two years and why it’s important to recognize that our digital health technology now reaches a very large segment of this market.
Of the 2 billion ePrescriptions transmitted annually 10% of these transactions involve rents with a co-pay savings program. This means we have the potential to deliver 200 million transactions annually. With the escalating cost of health care and the prescriptions specifically being shifted increasingly to patients co-pay savings programs will be increasingly in demand. Based on these factors and indicators from our clients, agencies and partners we have estimate the total available market is worth well north of $1 billion.
We also believe that our spaced point of care where the patient and doctor are engaged either directly or in the waiting room has becoming the effective way to communicate. As personalized medicine grows in popularity, rest of the treatments are more commonly prescribed, digital health platforms like will be the greatest enablers for communication between the pharma industry and health care professionals.
Further more our platform will be viewed as a critical component for improving outcomes and reducing costs throughout the health care system, especially when it estimated that prescription non-compliance cost the U.S. health care system more than $100 billion annually. The only way to look at it our current and in-development solutions are command this market potential. And this being realized more and more every day as we expand our client base and channel reach and we integrate further within the ePrescription work flow and point of care.