Tech: MedAdvisor flies to 4 month high after big US investor tips $$ in
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An $11 million investment from $4.4 billion US healthcare solutions provider HMS has sent shares in medication management tech company MedAdvisor (ASX:MDR) to four-month highs.
MedAdvisor told the market this morning it had successfully raised $17 million as it seeks to accelerate its international expansion, with $11 million of that coming from new cornerstone investor HMS.
NYSE-listed HMS provides technology and analytics solutions to healthcare funders in the US including more than 325 health plans, government agencies and other healthcare organisations.
This investment means HMS is now MedAdvisor’s largest shareholder at around 13 per cent.
MedAdvisor will become HMS’s preferred partner for the distribution of digital health programs in the US and Australia.
Meanwhile, in the States, the deal is expected to immediately extend the potential funders of MedAdvisor digital health programs to include US health plans and other health payers, MedAdvisor chief exec Rob Read said.
“We are delighted that MedAdvisor’s strategy to leverage our patient health platforms in the US, Asia and most recently in the UK is endorsed by investors,” he said.
“This increased global reach is attracting high quality investors and to raise this funding at a premium provides strong endorsement.
“HMS is an innovative healthcare solutions company that is expert in patient behaviour and analytics.
“HMS is also active in Australia, being the largest private partner of the federal government’s digital health program, which will provide opportunities to validate joint solutions.”
HMS CFO Jeff Sherman will join the board of MedAdvisor.
HMS chairman and chief exec Bill Lucia said the deal was mutually beneficial.
“Our global search for innovative capabilities identified MedAdvisor for the services they can deliver to augment our offerings in both the US and Australia,” he said.
“We are looking forward to actively working with MedAdvisor to build significant value.”
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