Proto Script Pharmaceutical Corp (OTCMKTS:PSCR) shares rose 31.45% on Wednesday to $0.209 and were flat in after-hours trading. Share prices have been trading in a 52-week range of $0.02 to $2.20. The company has a market cap of $69.07 million at 330.48 million shares outstanding.
Formerly known as Yanex Group Inc, Proto Script Pharmaceutical Corp is a development-stage company thatis primarily in the business of repair power wheelchairs and scooters, which are classified as durable medical equipment products and reimbursable by healthcare insurance providers. As such, it has various contracts with state and governmental insurance providers, among others. These contracts provide the Company the right to sell and repair DME.
Also, the company’s health care insurance contracts allow it the ability to service patients nationally. It intends to expand its market through additional contracts and open several repair facilities throughout the continental United States. It currently has repair facilities in Las Vegas, Nevada, Rancho-Cucamonga, and Anaheim, California. As of June 30, 2016, the Company had not generated any revenues.
In a press release last month, Proto Script Pharmaceutical Corp shared that it is looking into opportunities in the expanding US power wheelchair and mobility scooter market.
The power wheelchair and personal mobility scooter market in the US is extremely large and getting larger each month as more and more patients realize how PWC’s can positively impact their quality of life and overall independence,” commented Michelle Rico, CEO of Proto Script Pharmaceutical Corp. “With an increasing number of very costly power wheelchairs and scooters in heavy daily use, the need for their regular maintenance has never been greater. With this in mind, PSP Homecare has focused its business expansion strategy on meeting the current and rising demand for professional and convenient PWC service and repairs on a national basis.”
The US represents 40% of the $1.5 billion power wheelchair and personal mobility scooter market and the aging trend in America is expected to grow by 100% to 84 million by 2050, according to the Census Bureau. Other agencies projected that the global power wheelchair and scooter market will reach $2.40 billion by 2021-22.
This extremely vital multi-billion dollar component of the PWC industry has often been overlooked and underserved by smaller local operators who are unable to fully take advantage of this huge market opportunity in a sophisticated way. PSP Homecare’s coordinated business strategy should allow us to dominate these local operators with superior sales and service teams, and compelling nationwide marketing programs,” added Rico.
Proto Script Pharmaceutical Corp is also looking into future expansion plans with Independent Practice Associations. IPAs are businesses organized and owned by a network of independent physicians for the purpose of reducing overhead and pursuing business ventures such as direct health care services contracts with employers, HMO’s, and other medical insurers.
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,” explained Rico.
She added that they are just beginning to realize the growth potential of the company’s business model in this aspect, mentioning that over 600,000 IPAs and over 4,000 other private insurers in the United States give them a tremendous opportunity to expand.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.