Arcadia Resources Inc. (AMEX: KAD) will sell up to $5 million in common shares in a registered direct offering to raise money for general corporate purposes, including expanding its pharmacy business.
Under the brand name Arcadia Health Care, the Indianapolis, Indiana, company sells DailyMed medication and supplement packages to home care clients, provides medical staff to home care clients and institutions, and sells home care products through its catalog.
During the last three years, Arcadia has exited unprofitable businesses, cut jobs, closed or consolidated executive and support offices, and reduced professional fees to regain profitability, according to a regulatory filing. It expects to narrow its operating loss to $2.8 million in the quarter ended Sept. 30, an improvement from a $3.2 million loss (pdf) a year ago, but still not a profit.
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In May and June, 2009, Arcadia sold its home healthcare equipment, industrial staffing and retail pharmacy software businesses for nearly $11 million to refocus on the increasing demand for home health care. The company’s recently adopted vision is “Keeping People at Home and Healthier Longer.”
Arcadia’s DailyMed medication management program, which packages 30-days’ worth of a patient’s medications and vitamins by date and time of dosage, is the fastest growing part of the company’s pharmacy business. It is designed to help patients better follow complex or chronic drug regimens, improve the quality of life for patients living at home and reduce costs for payers.
Medication-related problems like taking the wrong medications or not taking them at all creates more than $200 billion a year in avoidable medical expenses, according to the American Society of Consultant Pharmacists.
Arcadia acquired DailyMed in 2007 with the company’s $24 million purchase of PrairieStone Pharmacy LLC of Plymouth, Minnesota. Retail pharmacy entrepreneur Marvin Richardson, who was co-founder, CEO and president of PrairieStone, became Arcadia’s chief executive and president in January 2007.
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Arcadia launched DailyMed in Indianapolis shortly after relocating its corporate headquarters there from Michigan in late 2007, promising to create hundreds of jobs in exchange for hefty tax incentives.
This May, Arcadia announced another job spurt after lining up customers like WellPoint for its DailyMed program — up to 930 (pdf) managers, pharmacists, pharmacy technicians, account managers and sales jobs for its headquarters. Those additional jobs could spur $13.5 million more in job-creation incentives from the state.
The company’s shares are trading for about 37 cents apiece on the NYSE AMEX Equities market, down nearly six-fold from more than $2 in January 2007.