LISTED medication adherence specialist MedAdvisor has announced the outcome of a strategic review, which has identified "significant operational cost savings" following the successful integration of its GuildLink acquisition.
The company said it will save $2 million on an annual basis via a 20% reduction in staff by the end of this month, with the associated restructuring and redundancy costs included in the 22/23 financial year.
"The company's completion of the GuildLink integration on schedule and below budget, coupled with the initial realisation of strategic benefits, marks a significant achievement for MedAdvisor," according to an ASX update.
"The company is committed to building upon this foundation and leveraging the combined businesses to create enhanced value for all stakeholders."
A trading update indicates expected FY23 revenue of $95 million to $97 million, reflecting an increase of over 40%.
Improvements are also expected to profitability, with MedAdvisor now anticipating a loss of between $3 million and $3.5 million - a significant uplift compared to last year's $11.3 million overall deficit.
The organisation's Pathway to Profitability aims to drive operational efficiencies, with recent moves including the cloud migration of the company's US products which has lowered expenses and improved scalability.
"By consolidating resources and leveraging synergies, MedAdvisor has positioned itself for profitability in FY24," the company said.
MedAdvisor's US pipeline is materially above the previous corresponding period, with this growth attributed to diversification from traditional to digital revenue streams which has put the company in a strong position to capitalise during strong selling periods over the next six months.
CEO Rick Ratliff said, "we remain committed to delivering value to our shareholders".
Those shareholders include the Pharmacy Guild of Australia, with Guild Group Holdings taking a 15% stake in MedAdvisor in exchange for GuildLink last year in a deal valuing the in-house pharmacy tech firm at just over $9 million.
Anthony Tassone, Vic Branch President of the Pharmacy Guild of Australia, also sits on the MedAdvisor Board of Directors.
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