MEDADVISOR'S (MDR's) takeover of the Pharmacy Guild of Australia's GuildLink business is fuelling immediate revenue growth.
In a market update, MDR revealed that its Australian revenue increased by 38.1% to $4.5 million, in the first quarter of the 2023 financial year, following its acquisition of GuildLink in Jul (PD 25 Jul).
The company reported that excluding GuildLink underlying revenue for the quarter ending 30 Sep was up by 3.6%.
MDR noted that "the integration of GuildLink is progressing well and to plan, focused on transitioning customers and enhancing the functionality of the MedAdvisor Plus One platform".
"Gross margin was 81.8% for 1Q FY23, broadly in-line with the prior corresponding period, and is expected to improve once the GuildCare platform has been integrated towards the end of FY23," the company said.
The Australian Securities Exchange (ASX) update also noted that the acquisition of GuildLink was funded by way of a placement of 15% of the fully paid ordinary shares in MDR to Guild Group, with $0.7 million paid in relation to acquisition related expenses, with $1.7 million in cash acquired through the acquisition, to reflect the acquired deferred revenue.
MDR also reported that it has continued its rollout in New Zealand, with 204 pharmacies across the Green Cross network now using its services, representing 25% of the NZ market.
The company noted that there has also been significant change at MDR in recent months, with new US-based CEO, Rick Ratliff, starting in his role on 17 Jul, while Pharmacy Guild of Australia Victorian Branch President, Anthony Tassone, was appointed to the Board on 27 Jul, as a non-executive director, while Josh Swinnerton retired from the Board, but remained with MDR as an executive.
New Chief Financial Officer, Ancila Desai, joined MDR earlier this month, with Kevin Hutchinson set to join the Board as a non-executive director in Nov.
Meanwhile, funds management firm, Perennial Value Management Limited, has increased its stake in MDR from 10.52% to 11.56% this week.
However the Guild remains MDR's largest shareholder with an 18% holding.
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