MedAdvisor’s 50:50 JV ZPM Signs MedExpress Drugstores as its First Customer

Be the First to Comment Read

MedAdvisor’s 50:50 JV ZPM Signs MedExpress Drugstores as its First Customer

 MedAdvisor’s 50:50 JV ZPM Signs MedExpress Drugstores as its First Customer

Australia’s leading digital medication management company, MedAdvisor Limited (ASX: MDR) on 20th May 2019, announced that its 50:50 joint venture company, Zuellig Pharma (ZP MedAdvisor Pte Ltd, “ZPM”) has signed MedExpress Drugstores as its first customer. MedExpress Drugstores is a leading hospital outpatient pharmacy chain in the Philippines, serving around 1.5 million customers in 50 key hospitals across the nation. Furthermore, MedExpress is a top delivery service drugstore in the Philippines.

On 7th May 2019, the company announced that they had finalised 50:50 JV with Zuellig Pharma Holdings Pte Ltd with US$13 billion business and close to 100 years of history. ZP MedAdvisor Pte. Ltd, a Singapore based joint venture, aims to commercialise the medication management platform of MedAdvisor across Asia and will primarily be providing SMS based Digital Adherence Programs in the Philippines as well as Malaysia.

As per the agreement, ZPM will be providing a “MedExpress” white labelled mobile medication management app, which will help customers to track their medication as well as order refills from MedExpress.

The agreement term is of eighteen months and will start from the installation of the MedAdvisor app at the 1st MedExpress drugstore. The contract is to be renewed for another 2 years extensions. ZPM will be receiving a pre-decided share of the revenue from orders handled as well as its services offered through the MedExpress app.

However, the commercial terms and conditions with MedExpress remained confidential. For accessing the software, MedExpress will pay fixed and variable amounts.

In March 2019 quarter, cash receipts grew 32% as compared to December 2018 quarter. The net operating cash outflow decreased by 24.7% as compared to the previous quarter. MDR spent $3 million on international expansion, which includes the software build. The company also entered in an initial Digital Partnership Agreement with Adheris Health, a leading provider of patient adherence and engagement solutions to US pharmaceutical customers, which will open up an avenue to 197 million customers through 26k pharmacies.

Net cash outflow from the operating activities for the period stood at $1.634 million. The primary drivers of cash outflow consist of advertising and marketing expenses, staff costs and administration and corporate costs. Also, cash inflow from the receipts from customers was $2.315 million in March 2019 quarter and $5.939 million for the nine months.

Cash outflow from the financing activities of the company was $0.050 million. At the end of March 2019 quarter, the company had net cash and cash equivalents of $5.803 million. The estimated cash outflow in the June 2019 quarter stands at $4.057 million.

The shares of MDR has generated a decent YTD return of 78.79%. The shares of MDR were trading at $0.058 on ASX (as at AEST 12:27PM, 21 May 2019), down 1.695% as compared to its previous closing price. MedAdvisor Limited holds a market capitalisation of $80.41 million and approximately 1.36 billion outstanding shares.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


Speak your Mind

Featured Articles

kalkine logo


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK