OptimizeRx Corporation Reports Third Quarter 2016 Results

ROCHESTER, Mich., Nov. 07, 2016 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (OTCQB:OPRX), a health technology software company whose premier content-delivery platform enables pharmaceutical companies to offer doctors valuable product information and patient support right at point of prescribe, reported results for the third quarter ended September 30, 2016.

Q3 2016 Highlights & Subsequent Events
  • In October, the company announced independent research results confirming OptimizeRx delivered pharmaceutical brands a return on investment that ranged from 300% to 1,200%.
  • In October, the company expanded its partnership with Allscripts, a global leader in healthcare information technology solutions, to increase focus on clinical messaging for pharmaceutical companies.
  • Financial messaging, i.e., eCoupons, distributed for 75 brands in the third quarter of 2016, up from 71 brands in the third quarter of 2015 and continued testing of the market with 60 generic financial assistance programs.
  • Gross margin was $1.1 million or 59% of net revenue in the third quarter of 2016, as compared to $1.0 million or 48% of net revenue in the third quarter of 2015. The increase was due to a favorable product mix shift to higher margin brand support.
  • Cash and cash equivalents totaled $7.6 million at September 30, 2016, as compared to $7.6 million at June 30, 2016.
  • Completed re-branding of the company in the quarter to demonstrate its ability to provide financial and clinical messaging as well as brand support services, such as drug file integration and sales force training.

Q3 2016 Financial SummaryNet revenue in the third quarter of 2016 was $1.8 million versus $2.0 million in the same year-ago quarter. The decrease in net revenue was due to a number of brand programs completing ROI studies requested by large pharmaceutical clients. The company expects that the studies will confirm that the OptimizeRx platform substantially increases total prescriptions for its promoted brands given the platform's very positive history with these ROI evaluations. In fact, the company recently announced publicly the results of independent research studies demonstrating that OptimizeRx delivered pharmaceutical brands a return on investment ranging from 300% to 1,200%.

Operating expenses in the third quarter of 2016 were $1.3 million, as compared to $0.9 million in the same year-ago quarter. The increase was primarily due to an increase in expenses related to growth initiatives, including investments in the company's executive and sales team and related marketing and travel. Since the third quarter of 2015, the company has appointed a vice president of client services, a senior vice president of business development, a senior vice president of product and strategy, an additional vice president of sales, a director of sales, a vice president of channel development, and a new CEO.