Over the past few months, Trxade Group (NASDAQ: MEDS) has been busy in its development lab, creating tools that could enable the reopening of economies efficient and smarter. The efforts came to a conclusion last week, when the final product, named MedCheks, was finally launched across the globe.
MedsCheks is a free-to-download application that allows verification of vaccination status at airports, public events, and other places that are likely to see large gatherings. The application has a pay-per-scan monetizing model, where businesses get to check the temperature and blood oxygen level, besides vaccination information at point-of-entry kiosk units at the entrance of the event venues.
In an interview with AlphaStreet, Trxade CEO Suren Ajjarapu said the service is currently used primarily for private events in the US, and by government agencies abroad to streamline tourism.
Explaining how the app works, Ajjarapu said, “Kiosks will be set up in tourism destinations. After purchasing the tickets, the customers are required to register to the app to do the verification. When they actually reach the destination, they step in front of the kiosk’s face recognition system, which will check the temperature and give a green signal to enter the country. If the traveler gets a red check, they will receive a two-week quarantine protocol.”
In the long term, the CEO said the application will act as a tool that allows consumers to possess their health records so that they can seamlessly shift from one doctor to another.
Ajjarapu said all of Trxade’s solutions, including MedCheks, are aimed at helping the core focus of empowering independent pharmacies. “For example, if you look at vaccinations, independent pharmacies are losing out to CVS and Walgreens. However, with MedCheks, they can access the data recording, as well as scheduling features to reach more consumers,” he added.
An expanding product lineup
Outside MedCheks, Trxade has been rapidly expanding its product lineup and visibility, especially in the telehealth segment Bonum Health. The business has been signing partnerships with national brands such as SpartanNash, ProAct, Kinney Drugs, and Brookshire Grocery Company across all 50 states to reach more customers.
During last week’s post-earnings conference call, the management had stated that over 500 stores are offering Bonum Health solutions to thousands of users.
“If you look at last quarter of 2020 to this first quarter, downloads have actually doubled even though the partnerships have not been realized. And the conversion rate is anywhere between 10% to 13%. Once the partnerships come into play, we will see much more impact on the downloads,” the CEO said.
Strong Q1 results
Trxade last week posted a 39% increase in first-quarter revenues to $3.1 million, higher than what analysts were expecting. Meanwhile, the company swung to a net loss of $0.08 per share from a profit last year due to higher costs associated with PPE. Analysts had anticipated a loss of $0.05 per share.
During the quarter, the Tampa, Florida-based firm added 223 new independent pharmacies to its network. The company now has over 12,100 registered pharmacy members across all states.
MEDS stock has declined 23% since the beginning of the year, but the average analysts’ estimate suggests a 145% upside over the next 12 months.
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For more insights into Trxade Group, read the latest earnings call transcript.