TYSONS CORNER, Va., Feb 20, 2014 (GLOBE NEWSWIRE via COMTEX) -- ScripsAmerica, Inc. /quotes/zigman/10359580/delayed/quotes/nls/scrc SCRC +0.80% today announced that the Company has entered into a business management agreement with a New Jersey compounding pharmacy.
The agreement states that ScripsAmerica will manage all business operations of the pharmacy which specializes in compounding topical pain creams, in exchange for a percentage of its total revenue. These creams are experiencing growing demand because they provide an effective alternative to pills that can be more easily ingested in higher doses than originally prescribed. Since February 14ScripsAmerica's efforts have generated $57,000 in revenue.
The Company has previously announced plans to enter the rapidly growing compounding pharmacy market to create a new revenue stream and increase shareholder value. The compounding pharmacy industry is set to benefit from improved conditions over the next five years, according to a November 2012 IBIS research report. A key factor contributing to the overall growth of compounding pharmacies is the introduction of regulation US Pharmacopeia (USP) chapter 797. This regulation took effect in 2004 and was developed to help improve patient safety by developing standards designed to reduce large content error and contamination errors in compounded sterile products.
Further, a December 2012 article by the American Journal of Managed Care cites that pharmacies specializing in compounding have become more prevalent, citing the primary reason as drug shortages which have become more frequent over recent years. The American Society of Health-System Pharmacists currently lists a shortage of 235 products on its website. Another factor for expected growth in this market is the increasing number of Americans aged 65 and over, supporting demand for medications from the compounding industry that cannot be met by conventional medications.
CEO of ScripsAmerica, Bob Schneiderman, commented, "This agreement will provide very high profit margins for ScripsAmerica and represents our entry into the rapidly growing compounding pharmacy market. This marks a positive milestone for the company as it adds a very profitable business that will further grow and diversify our ScripsAmerica's revenue streams."
"This is a very exciting time for ScripsAmerica as we continue to expand our pharmaceutical enterprise. By broadening our presence in several niche markets, growing our drug distribution network of independent pharmacies and commencing the successful launch of our innovative RapiMed pain reliever in Asia, 2014 is set to be a breakout year for Scrips' shareholders," continued Schneiderman.
About ScripsAmerica, Inc.
ScripsAmerica, Inc. is a supplier of prescription, OTC and nutraceutical drugs, delivering pharmaceutical products to a wide range of end users across the health care industry. End users include retail pharmacies, hospitals, long-term care facilities and government and home care agencies. For more information, visit www.ScripsAmerica.com .
Safe Harbor Statement
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions, sector changes and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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