TYSONS CORNER, Va.--(BUSINESS WIRE)--ScripsAmerica, Inc. (OTCBB: SCRC), a leading provider of a range of specialty prescription and over the counter pharmaceuticals and medical supplies, today announced that it has signed Letters of Intent to acquire an equity interest in 2 additional specialty pharmacies licensed to dispense pharmaceutical specialty products in a total of 40 states.
Bob Schneiderman, Chief Executive Officer and Founding Partner of ScripsAmerica, said, "As part of our growth strategy, we believe that making strategic acquisitions of additional pharmacies similar in profile to Main Avenue Pharmacy represent an attractive, low-risk means to expand our geographic presence, leverage our existing investment, and introduce new products to our extensive distribution network. The two new pharmacies are licensed in a total of 40 states and already have a healthy mail order business, bringing us a platform that nicely complements our current operations. In addition, with these additions we also gain the market expertise and knowledge of their management teams, which will serve to strengthen our overall organization."
ScripsAmerica intends to fund the acquisition from existing cash balances or borrowing availability. The transaction is subject to normal due diligence and the completion of satisfactory purchase agreement, with the intention to close the acquisition no later than June 30, 2015.
Separately, Main Avenue Pharmacy received notice from one of its payor insurance companies that its agreement was ending effective March 13, 2015.
Mr. Schneiderman added, "We are already filing for arbitration to adjudicate the ending of our insurance contract as we firmly believe this decision is unjust. While the matter is adjudicated, however, the insurance company has elected to not reimburse its patients who purchase certain of our products from Main Avenue Pharmacy, which will have an impact on their revenues. Fortunately, while any temporary or permanent loss of these reimbursements to our patients will impact our revenues, we still believe our total revenues in 2015 will grow due to the efforts underway to diversify into adjacent and complementary healthcare operations, such as PIMD, diabetic medical supplies, additional pharmacies, and, prospectively, a Physician dispensing program. In addition, we believe revenues from Main Avenue Pharmacy and other lines of business should enable us to generate a profit in 2015."
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.