The Camberwell-based Medadvisor Limited (ASX: MDR) develops and offers medication management software in Australia. Its products include MedAdvisor medication and adherence platform, PlusOne end-to-end workflow management platform and Health Services Hub.
Recently, Medadvisor released an investor presentation highlighting its business performance, international strategy, new partnerships and a corporate overview. The company holds a proven product recognition and market penetration in Australia with over 1.1 million patients and ~ 3,200 pharmacies using MedAdvisor and a user growth of 14.6% recorded for 1H FY2019. So far, it has a profitable underlying business with the gross margin exceeding maintenance opex.
In Australia, the market opportunity is pretty expansive and yet to be tapped with ~ 5700 pharmacies, over 12 million people suffering from a chronic disease and a domestic revenue potential of AUD 40 million to AUD 50 million. The revenue model comprises two key sources including SaaS-based subscription revenue (65%) and user bases transactional revenue (35%).
However, Australia only constitutes less than 2% of the world medicines market, and so Medadvisor is all set to leverage its Australian experience and drive international expansion by extending services to the world’s largest markets- the United States and South East Asia.
On March 22nd, 2019, the company signed an initial 12-month Digital Partnership Agreement with the US-based Adheris Health, that aims to extend Adheris Health’s current suite of adherence and engagement solutions to include SMS & web-based offerings powered by MedAdvisor. The initiative stems from an underlying rising interest expressed by the stakeholders in the US pharmaceutical market in increasing their reach through digital channels. The partnership will expose MedAdvisor to around 197 million patients, 26,000 pharmacies and expected to generate revenue in FY2019.
In addition, the company also signed a Heads of Agreement in December 2018 to form a 50-50 joint venture in Singapore with Zuellig Pharma, a leading healthcare services group in Asia servicing over 350,000 medical facilities in Asia with operations across 13 markets and a turnover of ~ USD 12 billion. Initially, MedAdvisor’s medication management platform will be launched in the Philippines and South Korea in FY2020, with other markets to follow. The addressable population for the joint venture is over 560 million people across the South Asia region, and the estimated pharmaceutical spend is USD 69 billion.
Medadvisor released its financial report for the half-year ended December 31st, 2018 (H1 FY2019), posting a record revenue from operating activities at $ 3.88 million, up 19% on the prior corresponding period (PCP) ended December 31st, 2017. The total revenue amounted to $ 3.96 million with gross margin upto 87.6% in line with the guidance. Besides, the services recorded in PlusOne grew at a staggering 280% over the PCP.
The loss from ordinary activities after tax also increased by 98.9% to $ 4.50 million. At the end of the concerned period, the net cash and cash equivalents amounted to $ 7.38 million.
With the close of the market trading on March 22nd, 2019, the MDR stock price stood at AUD 0.044, soaring 7.32% by AUD 0.003 and ~ 8.32 million shares traded.
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