[In this series, we’ll be covering certain earnings calls of New Jersey public technology companies as a way of keeping up with their ongoing progress.]
Founded in 2009, Tabula Rasa HealthCare (TRHC) is a healthcare technology company led by Calvin H. Knowlton, founder, chairman and CEO. It advances the safe use of medication, and makes medication management better for pharmacists, prescribers and consumers.
“Consistent with our pre-announcement on July 20, we delivered better than expected second-quarter revenue of $72.6 million, which was 13 percent higher versus a year ago,” Knowlton said during the August 5, 2022 Second Quarter 2022 TRHC Earnings Conference Call, heard on the Seeking Alpha website. “We continue to execute on our planned divestitures and strategy to refocus the company in a few large markets led by PACE [Program of All-Inclusive Care for the Elderly].”
In addition to the 13 percent revenue increase compared to 12 months ago, product (medication) revenue increased 19 percent to $55.9 million, while service revenue decreased 4 percent from a year ago to $16.7 million, TRHC said in a press release. Excluding the revenue of $2.3 million during the second quarter of 2021 related to the federal government’s Enhanced Medication Therapy Management pilot program, TRHC saw a 10 percent increase in service revenue buttressed by the growth of its pharmacy benefit management, third-party administration, and risk adjustment business lines.
Here are a few key points made in the earnings call:
- TRHC has signed a five-year contract renewal with Trinity Health PACE for TRHC’s CareKinesis PACE Pharmacy services. Trinity, the largest non-for-profit PACE provider, with almost 3,500 participants in nine states, was TRHC’s largest client, based on their 2021 revenue.
- “First, there is a growing demand in moving from personalized to precision medicine through pharmacogenomics or PGX testing in PACE. During the first half of 2022, we began to deliver a growing number of tests and consults for PACE participants,” said Orsula Knowlton, TRHC founder, president and chief marketing officer. “Second, there is an exciting level of startup PACE programs projected to open in the next two years. We have an increasing number of PACE partners who plan to expand outside of their home state and have already won new state requests for applications. Given our existing footprint and proven outcomes documented in peer-reviewed publications, we feel confident in our ability to win future sales opportunities. Also, it is important to note that our 17 percent revenue growth this quarter within CareVention remains driven by organic growth.”
For more information on Tabula Rasa HealthCare, visit www.tabularasahealthcare.com.