MedAdvisor takes its electronic pharmacy scripts to the US; shares jump 25pc
Health & Biotech
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MedAdvisor shares jumped 25 per cent on Tuesday after the e-health play announced a move into the United States via a marketing and licensing deal with a US software maker PDX Inc.
The shares climbed from 4c to an intraday high of 5c before closing at 4.7c.
MedAdvisor (ASX:MDR) markets an app that tracks medications and scripts for patients and connects to doctors and pharmacists without the hassle of juggling paper scripts.
Under the deal PDX, which services 10,000 US pharmacies or about 15 per cent of the US market, will integrate the MedAdvisor app into its pharmacy management system.
The deal would allow pharmacies using PDX software access to MedAdvisor’s app, allowing ordering through the app.
The integration is due to commence shortly, once MedAdvisor has in place the development team to carry out the work. It’s expected to complete integration later this year.
Once the integration is complete, MedAdvisor will promote its pharmacy software to the 10,000 pharmacy customers of PDX, with the support of PDX.
“With a pharmacy market that is ten times that of Australia, expansion into the US market was the natural next step,” said Medadvisor CEO Robert Read.
“Integrating our software with a key player with a significant share of that market will enable us to target a large potential customer base and commence our market entrance quicker than we would be able to do by ourselves.”
The agreement with PDX comes following MedAdvisor’s success last year in attracting leading healthcare company EBOS onto its register, with EBOS taking a 14.1% holding in the company for $9.5m.
The additional funding has also provided MedAdvisor with a strong cash balance and according the Company, it has plenty of cash to fund the integration in the US and to continue its expansion efforts domestically.
MedAdvisor is also targeting expansion in the UK and has an expert on the ground there to evaluate the best market entry strategy.
Over one million users have signed up across Australia to use MedAdvisor’s services, a testament to the benefits it is delivering patients and their carers.
Furthermore, it boasts over 50% of Australia’s pharmacies using its PlusOne pharmacy software, that allows pharmacists to better engage with customers and makes the process of managing their back-office operations, including medication ordering, simpler.
This follows the news last week that MedAdvisor will provide digital communication channels for Zest, a subsidiary of EBOS and the two businesses are already working together to implement their first program.
According to Mr Read, MedAdvisor’s technology has a key role to play in digitising healthcare programs with the ability to facilitate seamless communication with patients and to manage and monitor progress.
MedAdvisor is also eyeing expansion into the hospital market. With a fragmented healthcare system and rising healthcare costs, MedAdvisor has a key role to in increasing the connectivity and flow of information between all healthcare providers.
It hopes to reduce the medication errors that are made at the transition of care by digitising and formalising the admission and discharge processes. Zest and MedAdvisor expect to collaborate on hospital programs in the near future, alongside hospital pharmacy chain and EBOS subsidiary, HPS.
Since listing on the ASX in December 2017, MedAdvisor has increased its revenue by over 50% every half year period. In 1H FY18 the Company reported $3.25m of revenue, more than doubling its 1H FY17 revenue.
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