- Retains proprietary software platform and internal support for DailyMed Pharmacy
- Proceeds from divestiture used to further reduce debt
INDIANAPOLIS, June 15 /PRNewswire-FirstCall/ -- Arcadia Resources, Inc. a leading provider of home care, medical staffing, and pharmacy services under the Arcadia HealthCare(SM) brand, today announced the sale of its JASCORP retail pharmacy management software business.
Arcadia sold the JASCORP services and systems, including dispensing and billing software used by pharmacies in 39 states and Puerto Rico, to a leading pharmacy benefits management company for $2.2 million in cash.
“In line with our strategic growth objectives, Arcadia has retained the intellectual property and source code necessary to support our DailyMed pharmacy business, while exiting and monetizing the non-core pharmacy management system side of the business,” said Marvin R. Richardson, President and CEO of Arcadia Resources. “By divesting ourselves of the customer base associated with the JASCORP system, we reduced debt and continued our efforts to focus our resources on our rapidly growing DailyMed business and core home care and medical staffing operations.”
Under the terms of the agreement, Arcadia will retain certain proprietary software, source code and interfaces associated with the DailyMed(TM) platform and the internal programming resources, network and IT system’s support for its DailyMed Pharmacy. The JASCORP software platform represented approximately $2.1 million in annual revenue in Arcadia’s Pharmacy segment.
Richardson added, “It’s important to note that we have secured a buyer that will maintain the high level of service our customers have come to expect. In addition, we are selling the business for a higher price than we paid for the entire division two years ago, which will help us strengthen our balance sheet and enhance our financial flexibility to drive growth.”
About Arcadia HealthCare
Arcadia HealthCare is a service mark of Arcadia Resources, Inc. , and is a leading provider of home care, medical staffing and pharmacy services under its proprietary DailyMed program.
DailyMed(TM) Pharmacy dispenses a monthly cycle of a patient’s prescriptions, over-the-counter medications and vitamins, and organizes them into pre-sorted packets clearly marked with the date and time the medications should be taken. In the dispensing process, a DailyMed pharmacist reviews each patient’s medication profile and utilizes state-of-the-art medication therapy management tools in order to improve the safety and efficacy of the medications being dispensed. A DailyMed pharmacist provides routine communication with the patient, the primary care physician, caregivers and payors in order to maximize the pharmaceutical care administered. The DailyMed program improves patient care and drug utilization while reducing drug and hospitalization costs for private and government payors.
The Company, headquartered in Indianapolis, Indiana, has approximately 70 locations in 21 states. Arcadia HealthCare’s comprehensive solutions and business strategies support the Company’s vision of “Keeping People at Home and Healthier Longer.”
Forward Looking Statements
Any statements contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21A of the Securities Exchange Act of 1934, as amended and otherwise within the meaning of court opinions construing such forward-looking statements. The Company claims all safe harbor and other legal protections provided to it by law for all of its forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, estimates, uncertainties and other factors, which could cause actual financial or operating results, performances or achievements expressed or implied by such forward-looking statements not to occur or be realized, including our estimates of consumer demand for our services and products, required capital investment, competition, and other factors. Actual events and results may differ materially from those expressed, implied or forecasted in forward-looking statements due to a number of factors. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the Company’s filings with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” and elsewhere in the Company’s most recent Annual Report on Form 10-K and subsequent periodic reports. Among the factors that could cause future results to differ materially from those provided in our press release are: (i) we cannot be certain or our ability to generate sufficient cash flow to meet our obligations on a timely basis; (ii) we may be required to make significant business investments that do not produce offsetting increases in revenue; (iii) we may be unable to execute and implement our growth strategy; (iv) we may be unable to achieve our targeted performance goals for our business segments; and (v) other unforeseen events may impact our business. The forward-looking statements speak only as of the date hereof. The Company disclaims any obligation to update or alter its forward-looking statements, except as may be required by law.
CONTACT: Matthew Middendorf, Chief Financial Officer, +1-317-569-8234
x106, mmiddendorf@arcadiahealthcare.com
