SeeThruEquity Initiates Coverage on HealthWarehouse.com, Inc. (HEWA) with a Price Target of $0.65

NEW YORK, NY / ACCESSWIRE / October 3, 2016 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has initiated coverage on HealthWarehouse.com, Inc. with a 12 month price target of $0.65.

The report is available here: HEWA Initiation Report.

We initiate coverage on HealthWarehouse.com, Inc. (OTCQB: HEWA, “HealthWarehouse.com”) with a price target of $0.65. Based in Florence, KY, HealthWarehouse.com has branded itself America’s Trusted Online Pharmacy and is seeking to disrupt the $80Bn cash / co-pay market for prescription drugs. HealthWarehouse.com launched its operations in 2007 and is focused on selling generic and brand name prescription drugs and OTC products with convenient online ordering and home delivery. The company has invested significant time and effort becoming a fully compliant online destination for low cost prescription drugs. Indeed, HealthWarehouse.com is one of 48 VIPPS (Verified Internet Pharmacy Practice Sites) accredited pharmacies in the US, and is the only VIPPS accredited pharmacy licensed in all 50 states and Washington DC, and according to management. The company was recently the object of a proxy battle, and as a result we expect new announcements to be forthcoming on the leadership team for the company.

Large market poised for online disruption
In our view the pharmacy industry is ideally suited for online disruption from well-managed companies which can offer attractive pricing and the convenience of online ordering, while still complying with industry regulations. Annual prescription drug sales rose by an astonishing 8.5% in 2015 to reach $309.5Bn, according to IMS Health data, while the number of prescriptions filled grew by only 1% to 4.4 billion. A significant burden of this price increase has been placed on consumers through high co-pay plans, out-of-pocket expenses, rising deductibles, and an increasing the prevalence of flexible spending / health savings accounts, making the process of shopping at retail pharmacies both inconvenient and increasingly expensive. In addition to the clear benefits of convenience offered by an online ordering platform, there appears to be sufficiently healthy profit margins in the pharmacy business to allow for mobile / online disintermediation. HealthWarehouse.com is attempting to do exactly this, offering a range of prescription drug offerings that can be delivered within two days to 80% of the US, with pricing competitive enough for the company to be highlighted as a low cost option for generic drugs in a recent Consumer Reports review published in December 2015.

Sales growth ignited in 1H16 following positive press, ad campaigns
HealthWarehouse.com’s sales have jumped following the positive review in Consumer Report, as well as a concurrent online advertising campaign implemented by the company. Revenues climbed by 28.5% YoY in 2Q16 to reach $2.4mn. For the first half of 2016, total revenues are up 36.4% to $4.8mn, versus $3.5mn in 1H15. The company has been experiencing particular strength in its consumer business. During 2Q16, consumer sales grew by more than 50% YoY to reach $2.3mn, including prescription sales of $1.8mn, which were up approximately $0.6mn from the year-ago period. 2Q16 prescription sale were the highest in the company’s history.

Initiate coverage with a price target of $0.65
We see HealthWarehouse.com as an attractive speculative company in the large retail pharmacy market, with significant potential if the company can execute its growth plans. HealthWarehouse.com’s online platform offers a low-cost, convenient alternative to traditional pharmacies, and is trying to capitalize on the success of its recent publicity in Consumer Reports highlighting this, as well as an online advertising campaign. If achieved the price target of $0.65 suggests potential upside of 150.0% from the recent price of $0.26.

Please review important disclosures at www.seethruequity.com.

About HealthWarehouse.com, Inc.
HealthWarehouse.com, Inc. (HEWA) is a trusted VIPPS & Vet-VIPPS accredited online pharmacy based in Florence, Kentucky. The Company is focused on the growing out of pocket prescription market, which is expected to grow to over $80 billion in 2016. With a mission to provide affordable healthcare to every American by focusing on technology that is revolutionizing prescription delivery, HealthWarehouse.com has become the largest VIPPS accredited online pharmacy in the United States. HealthWarehouse.com is licensed in all 50 states and only sells drugs that are FDA-approved and legal for sale in the United States. HealthWarehouse.com

About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.

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SeeThruEquity
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SOURCE: SeeThruEquity

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