On 3 November 2018, MedAdvisor Limited (ASX: MDR) announced that it has signed a Heads of Agreement to form a Joint Venture with Zuellig Pharma Holdings Pte Ltd. Following the release of this news, the share price of the company increased by 18.182 percent as on 3 December 2018.
Zuellig Pharma Holdings is one of the largest healthcare services groups in Asia, and it is having a business of US$12 billion which provides healthcare services to more than 350k medical facilities across Asia and works with more than 1,000 corporate clients which includes top 10 pharmaceutical companies in the world.
As per the Joint Venture agreement, MedAdvisor will form a 50:50 joint venture with Zuellig Pharma which will be based in Singapore to commercialize MedAdvisor’s medication management platform in Asia. MedAdvisor is planning to license its core intellectual property to the Joint Venture on an exclusive, royalty-free basis. Further, it will also develop localized versions of its platform for pharmacies and patients in the Filipino and South Korean markets. Both the companies have conducted in-depth product-market fit assessments, and they are sure that that MedAdvisor’s technology can be successfully rolled out in these countries, which share a similar prescription model as Australia.
As per MedAdvisor’s CEO, this Joint Venture is the most significant development in MedAdvisor’s history as Zuellig Pharma is the perfect partner to take the company’s offerings into the region. The management of the company is excited that its global product platform which it is developing for the US and UK, will work just as well in Asia.
According to the CEO of Zuellig Pharma Mr. John Davison, the platform of MedAdvisor is having a potential to help millions of people manage their medications safely and effectively. This Joint Venture will increase the Zuellig Pharma’s growing suite of digital solutions that address key pain points in delivering quality healthcare.
Zuellig Pharma is planning to market the Joint Venture’s offering to its extensive network of pharmacies, medical clinics, and pharmaceutical manufacturers, initially focusing on the Philippines and South Korea in FY 2020, followed by launches in additional Asian markets. As per the company’s announcement, this Joint Venture will generate multiple streams of revenue including software as a service subscription fees from pharmacies, transaction-based revenue and program fees from pharmaceutical manufacturers for the delivery of digital patient engagement programs.
In the last six months, the share price of the company decreased by 23.26 percent as on 30 November 2018. MDR’s shares traded at 0.039 with a market capitalization of circa $43.99 million as on 3 December 2018 (AEST 4:00 PM).
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