OPRX Update Very Promising
Brian Marckx, CFA
Business Update
This morning (2/3/12) OptimizeRx (OPRX) released an abbreviated operational update. Included was that Q4 2011 results should show a profit – which will be the company’s first quarter in the black. It will also be an upside surprise relative to our estimated ~$400k loss for Q4. We will update our model when the company releases Q4 results.
The other two highlights in the press release are that OptimizeRx expects the number of providers using its flagship SampleMD software to double by the end of Q1 2012 and that they launched a beta update to the software. Increasing the number of users is key to OptimizeRx’s growth and is at the forefront of the company’s near-term strategy. Today’s update indicates that OptimizeRx is having success in doing just that. We had previously modeled the SampleMD user base to approximately double from Q3 2011 to Q1 2012 – which is roughly commensurate to OptimizeRx’s current expectations.
The beta update relates to additional functionality to help physicians streamline scheduling of drug reps. OptimizeRx had previously noted that this was something that they were working on and hoped to have fully integrated sometime during 2012 – launch of the beta version is a meaningful step in that direction.
Maintaining Recommendation / Price Target
We are maintaining our Outperform rating and $5.00 price target on OptimizeRx.
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