Proto Script Pharmaceutical Corp (OTCMKTS:PSCR) is a small cap player in the durable medical equipment market that has really caught the imagination of traders and investors during the stock’s remarkable run over the past two months. The key catalyst fueling the rise appears to be its new contract with Centers for Medicare and Medicaid Services, but the company has continued to gain traction, grabbing a couple new partnerships with IPA’s (Independent Practice Associations organized and owned by a network of independent physicians that range in size from small three physician networks to larger organizations of 100’s of physicians). Employers, HMO’s, and other managed care plans can contract with multiple IPA’s to treat their members (patients) at discounted fees or on a per-member basis.
“The unique partnership embodied in the doctor/patient relationship is still one the cornerstones of our healthcare system, and IPA’s have enabled that relationship to continue despite the changing healthcare and insurance regulatory landscape,” commented Michelle Rico, CEO of Proto Script Pharmaceutical Corp. “In working directly with IPA’s and other private insurers across the country, PSP Homecare can gain access to an extremely large potential customer base of insured patients outside of Medicare that would benefit from a new power wheelchair or scooter, or get service and repair for their existing unit at one of our many future locations.”
Proto Script Pharmaceutical Corp (OTCMKTS:PSCR) bills itself as a company that provides a comprehensive collection of durable medical equipment (DME) like canes, crutches, walkers, commodes, patient lifts, hospital beds, orthotics (braces), wheelchairs, scooters, power wheelchairs, rehabilitation equipment, and accessories.
Currently serving California and Nevada, PSP Homecare has specialized in the repair of power wheelchairs and the sale of orthotics since 2011.
The Company deals with a growing list of federal, state and private insurance providers such as Medicare, Medi-Cal, Nevada Care and Blue Cross among several others.
According to company materials, “Proto Script Pharmaceutical Corp. dba PSP Homecare provides a comprehensive collection of durable medical equipment (DME) like canes, crutches, walkers, commodes, patient lifts, hospital beds, orthotics (braces), wheelchairs, scooters, power wheelchairs, rehabilitation equipment, and accessories. Currently serving California and Nevada, PSP Homecare has specialized in the repair of power wheelchairs and the sale of orthotics since 2011. The Company deals with a growing list of federal, state and private insurance providers such as Medicare, Medi-Cal, Nevada Care and Blue Cross among several others.”
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As noted above, in addition to its current multi-year contract with the Centers for Medicare and Medicaid Services (CMS) to provide products to Medicare insurance beneficiaries, PSP Homecare has also successfully obtained contracts with two IPA’s to provide products to their insured patients.
PSP Homecare anticipates this number will grow as the Company ramps up its marketing strategy and expands into new regions. Michelle Rico concluded, “We are only just beginning to realize the growth potential of our unique business model. With over 600,000 IPA’s and over 4,000 other private insurers in the United States, the opportunity to expand our business on a national scale is truly enormous.”
We’ve witnessed nearly 150% tacked on to share pricing for the stock in the past month. Market participants may want to pay attention to this stock. Moreover, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 21% beyond its prior sustained average level.
This should not be overlooked with a float in play that’s tiny — of 4.7M shares. One is wise to respect the dynamic this may create — ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices. Since we last covered PSCR, the stock has moved 23.9% higher.
Currently trading at a market capitalization of $703.9M, Proto Script has virtually no cash on the books, which must be weighed relative to about $291K total current liabilities. The company is pre-revenue at this point. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of $PSCR stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!