Trxade Group Inc., which operates a business-to-business e-commerce marketplace that links more than 5,500 independent pharmacies with drug wholesalers and distributors, says it has a prescription for taking strong growth in 2015 into a financially stronger 2016.
Trxade’s surge in 2015 revenue—more than tripling year over year to nearly $5 million—helped to slice nearly in half its year-earlier net loss, to just over $1 million from about $2 million.
“We are confident our growth will continue to trend positively and expect to achieve record financial results again in 2016,” says CEO Suren Ajjarapu. “After several years of investments in building our proprietary platform, we believe we are now well-positioned to attract and deliver solid measureable value to our customers in both time and money.”
Trxade says that about two dozen wholesale suppliers sell on its web portal, rx.Trxade.com, providing independent pharmacies with more than 15,000 SKUs, up from about 6,000 SKUs at the end of 2014.
“Over the next few years our goal is to grow revenues flowing through our platform by increasing the number of pharmacies using our services as well as the amount of purchasing done through our platform,” Ajjarapu says. “With 24,000 independent pharmacies in the U.S. accounting for $93 billion in pharmaceutical purchases each year, we believe we have tremendous growth potential ahead of us.”
For the fourth quarter ended Dec. 31, 2015, Tampa, Fla.-based Trxade reported:
- Revenue increased year over year 94.4% to $1.15 million from $591,624 in Q4 2014;
- General and administrative expenses increased 51.7% to $1.31 million from $863,805;
- Net loss was $495,445 compared with a net loss $437,144.
“Our record fourth quarter revenues reflect another strong quarter of transactional revenue for our supplier-to-pharmacy trading platform,” Ajjarapu says.
For the year ended Dec. 31, Trxade reported:
- Revenue increased year over year 234.9% to $4.99 million from $1.49 million;
- General and administrative expenses increased 63.3% to $4.05 million from $2.48 million;
- Net loss was $1.11 million compared with a net loss of $2.01 million.
In 2016 Trxade will target new trading partners in small hospitals with 100 beds or less that operate an internal pharmacy. “We are just scratching the surface,” Ajjarapu says.
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