NEW YORK, March 16, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, is on track for a big leap in revenue growth this year due to some clear market foresight and a strategic decision to enter the telemedicine market early last year.
The traditional model of visiting a doctor’s office, receiving a physical prescription, visiting a neighborhood pharmacy, and returning to see a doctor for follow up care or prescription refills has become increasingly inefficient, costly to patients, and discourages many from seeking much needed medical care. As a result, the U.S. healthcare system is undergoing massive disruption thanks to new technologies and the emergence of direct-to-consumer healthcare.
Conversion Labs is one of the only pure-play publicly traded direct-to-consumer pharmacy and telemedicine companies. Direct-to-consumer telemedicine companies like Conversion Labs can now offer patients immediate and virtual treatment from licensed physicians, along with home delivery of prescription medications bundled with over-the-counter wellness products.
“We see online diagnosis and treatment of patients and the associated pharmacy business as the next big wave that will fundamentally change the nation’s $3.5 trillion healthcare market,” commented Justin Schreiber, president and CEO of Conversion Labs. “Driving this transformation will be the proven ability for telemedicine services and online pharmacies to improve access to healthcare while dramatically reducing costs for millions of Americans.”
Schreiber points out that the key to success in telemedicine lies in being able to acquire customers cost-effectively and then retain them over the long term: “The companies that will ultimately dominate the direct-to-consumer telemedicine space will be those that are first-to-market, create a convenient and incredible customer experience, and are the best online marketers. Conversion Labs checks all three of these boxes.”
Aside from companies developing vaccines or treatments for the coronavirus, one of the biggest long-term beneficiaries of the national outbreak will be telemedicine or virtual healthcare businesses. Now besides for the inconvenience, people want to avoid the doctor’s office due to the elevated risk of being infected with Coronavirus and are turning to telemedicine—many for the first time.
Last week, Vice President Mike Pence announced in a press conference that health insurers will pay for telemedicine services during the COVID-19 outbreak, and President Trump repeatedly praised the value of telemedicine. As the coronavirus outbreak spreads, the CDC has encouraged people to use telehealth services.
Conversion Labs launched its first telemedicine brand, Rex MD, in December 2019. Rex MD is a men’s health brand initially focused on treating and prescribing medication for erectile dysfunction (ED). The size of the global ED treatment market is estimated to exceed $2.95 billion by 2023. Capturing even a small percentage of this market could be transformational for Conversion Labs.
To support the roll out of Rex MD, the company has built an end-to-end virtual healthcare solution that now includes a 50-state physician network, an industry leading online pharmacy, and a proven digital marketing operation. Rex MD will soon also offer treatments for longevity, strength and endurance, hair loss, skin care and other products.
The company is about to launch its second major telemedicine brand, SOS Rx. Under development long before the global outbreak of the coronavirus, SOS Rx provides a formulated package of prescription drugs for use in the event of similar disaster scenarios, including flu epidemics, sudden radiological exposure or bioterrorism.
While SOS Rx will not initially offer specific treatment for COVID-19, the outbreak in China, which has quickly spread to the U.S. and other parts of the world, is a perfect case in point for why preparedness is key—and the public is aware of this now more than ever. A recent survey by Finder.com revealed an estimated 68 million Americans (1-in-4) have purchased survival gear in response to unrest over political events or natural disasters. SOS Rx addresses this significant unmet need for Americans to have the appropriate medications on hand in the event of an emergency.
The company continues to develop its portfolio of direct-to-consumer wellness brands that encompass on-demand medical treatment, online pharmacy and over-the-counter products. “We want our brands to be top-of-mind for consumers and sought after for their proprietary characteristics and endorsements by thought leading physicians and influencers,” commented Schreiber. “While we aren’t the first in telemedicine, Conversion Labs has been an early mover when it comes to making extensive investments in technology and people. As a result, we’ve now become an emerging leader in the space.”
According to Euromonitor, the global market for direct-to-consumer healthcare products represents more than $700 billion in annual sales. Alliance Bernstein, the leading investment management and research firm, estimates that the market for online pharmacies in the U.S. now totals around $300 billion. They estimate that up to 70% of this market will move from traditional to online pharmacies over the next seven years. These major trends reveal that the market opportunities are immense, and Conversion Labs is well positioned to capitalize the massive shift to telemedicine for the delivery of healthcare.
Conversion Labs announced earlier that its expects to report a 47% increase in net sales for 2019, totaling about $12.2 million. Driven largely by the anticipated expansion of its telemedicine and health & wellness business that includes SOS Rx, the company sees revenue exceeding $30 million in 2020, growing by more than 145%.
“We have built a platform that allows us to efficiently launch telehealth and wellness product lines wherever we determine there is a market need,” added Schreiber. “Our platform is supported by a driven team of data analysts, designers, and engineers focused on building enduring brands that will improve the lives and health of our customers. Given the support of strong industry tailwinds, we believe our success in this endeavor will continue to drive tremendous revenues, profits and shareholder value over the coming quarters and years.”
About Conversion Labs
Conversion Labs, Inc. is a health and wellness focused e-commerce company with a portfolio of online direct-to-consumer brands. The company’s portfolio of brands includes proprietary over-the-counter products and prescription medications. It also provides online, virtual physician consultations to consumers in 49 states. In addition to its healthcare platform, Conversion Labs is the majority shareholder of PDF Simpli, a direct to consumer SaaS business for editing, signing, and sharing PDF documents. To learn more about Conversion Labs, please visit conversionlabs.com. For more about PDF Simpli, go to pdfsimpli.com.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other thing, statements regarding the offering, the expected gross proceeds, the expected use of proceeds and the expected closing of the offering. Any forward-looking statements contained herein are based on current expectations and are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company's ability to develop, market and sell its products; the expected benefits and efficacy of the Company's products; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies. These and other factors are identified and described in more detail in our filings with the SEC, including, our current reports on Form 8-K.
Juan Manuel Piñeiro Dagnery
Conversion Labs Investor & Media Relations Contact:
Ron Both, CMA
Tel (949) 432-7566