Conversion Labs Launches Veritas MD™ Telehealth Platform, Delivering Greater Access to Growing Portfolio of Industry-Leading, Direct-to-Consumer Pharmacy and Wellness Brands


NEW YORK, Dec. 11, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (NASDAQ: CVLB), a direct-to-consumer telemedicine and wellness company, has officially launched its new Veritas MD telehealth platform, opening the door to greater market expansion with a growing portfolio of industry leading, direct-to-consumer pharmacy and wellness brands.

Building upon its existing telemedicine infrastructure initially formed early last year, Veritas MD has been designed to deliver greater access and convenience to the rapidly growing number of consumers seeking medical treatment, prescription medications, and over-the-counter personal health products from the comfort and security of their home or office.

Veritas MD integrates patient electronic health records and health care provider workflows across the company’s existing telehealth platforms, which includes a 50-state physician network, a leading online pharmacy, and in-house telehealth product development lab. This is combined with Conversion Labs’ professional performance marketing team that is focused on delivering best-in-class telehealth services to patients nationwide.

“Our official launch of Veritas MD represents the culmination of years of development by experts in technology, medicine, and regulatory affairs,” stated Justin Schreiber, president and CEO of Conversion Labs. “Veritas MD revolutionizes the way people gain access to medical care and medications in this new post-COVID world, particularly where convenience, affordability and health security have become paramount.”

The state-of-the-art telemedicine technology that forms the foundation of Veritas MD has also transformed the scalability and agility of the company’s entire operations.

“Given the enhanced capabilities of Veritas MD, we are now better able to develop and then deliver treatments for new indications faster and more efficiently than ever before,” added Schreiber. “Veritas MD delivers incredible operational leverage by supporting greater scale at lower cost, especially how it now allows us to transition away from less efficient and more expensive third-party systems. But more importantly, its expertly designed video-powered mobile interface enhances the overall user experience and quality of care for both patients and doctors.”

Veritas MD will support the upcoming nationwide rollout of Nava MD, the company’s first online teledermatology and over-the-counter skincare brand with patented and clinically proven formulations. Nava MD addresses one of the fastest-growing market segments of the healthcare market, with teledermatology projected to grow at a 24% CAGR to hit $45 billion by 2027.

Nava MD follows on the success of the company’s other increasingly popular brands that include Rex MD and Shapiro MD. The company plans to soon launch a brand expansion of Rex MD to address additional medical indications, which it expects to solidify Conversion Labs’ market position as a leader in men’s health.

Traditionally, access to prescription medications has been available only through an in-person visit to a doctor’s office. Telemedicine provides convenient access to prescription medications and eliminates the need for in-person visits, ultimately saving patients and medical professionals time and money.

According to Forrester Research, this year telehealth has “shifted into hyper-drive,” with virtual health care consultations on pace to top 1 billion by year end. The telemedicine market is expected to grow at a 19.3% CAGR, reaching $175.5 billion by 2026, while the ePharmacy market is projected to grow at a CAGR of 17.3% over the same period to reach $177.8 billion. The timely launch of Veritas MD benefits from this paradigm shift in healthcare and the strong industry tailwinds it creates.

As an emerging leader in these high-growth markets, Conversion Labs recently reported hitting a record annualized revenue run-rate of nearly $50 million—an impressive four-fold increase over the $12.5 million in revenues last year—with gross margins exceeding 75%.

Annual recurring revenue (ARR) from subscriptions to products and services has reached $22.1 million, up 514% over last year, demonstrating a growing level of customer retention and high level of customer satisfaction. Strengthened by the many benefits provided by Veritas MD, the company expects growth to continue to accelerate into the new year.

To learn more about Veritas MD, visit conversionlabs.com/veritas.

About Conversion Labs
Conversion Labs, Inc. is a telemedicine company with a portfolio of online direct-to-consumer brands. The company’s brands combine virtual medical treatment with prescription medications and unique over-the-counter products. Its network of licensed physicians offers telemedicine services and direct-to-consumer pharmacy to consumers across the U.S. To learn more, visit Conversionlabs.com.

Annual Recurring Revenue
Conversion Labs calculates annual recurring revenue (ARR) by multiplying by 12 the monthly sum of revenue attributed exclusively to automatic subscription sales from customers that are engaged in the company’s rebill structure for the brands of Shapiro MD, Rex MD and PDFSimpli. In the company’s calculation of ARR, it does not consider sales from customers that repurchase its products themselves in the company’s checkout pages, Amazon Marketplace or through assistance of the company’s customer service representatives, since those sales have a marginal advertising/marketing expense associated with the respective sale. The company also does not consider the revenue attributed to the initial purchase upon acquisition of the respective customer.

Important Cautions Regarding Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to Conversion Labs, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

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