LISTED medication adherence specialist MedAdvisor Limited is set for a major expansion into North America, launching a $45 million capital raising in support of a binding agreement to acquire US-based Adheris LLC.
The announcement followed MedAdvisor's shares being placed into a voluntary trading halt (PD yesterday), with the massive deal set to see MedAdvisor "become a leader in tailored opt-out direct-to-patient medication adherence programs in the USA," the company said in an ASX update.
Adheris is currently owned by Syneos Health, and has an existing portfolio of pharmacy integrations which reduces the need for MedAdvisor to individually develop links with various US pharmacy groups and electronic health record platforms.
"Medication non-adherence is a multi-billion-dollar global market with a lack of global players working to solve it," said MedAdvisor CEO Robert Read.
"The US represents about 40% of the world's medicines market and Adheris has the potential to reach one in two Americans through its opt out patient programs.
"The opportunity to acquire a strategically aligned scale provider in the US, with whom we have already integrated our technology and go-to-market approach, we believe is transformational for MedAdvisor," he said.
"This acquisition primes MedAdvisor to become a genuine global player with scale in medication adherence, helping millions of patients around the world improve their health outcomes," Read added.
The US$34.5 million deal is subject to the successful completion of an institutional equity raising which is anticipated to close on 16 Nov, while the vendor, Syneos Health, has agreed to take US$5 million of the up-front payment in the form of convertible notes which may be switched into shares by 21 Mar 2021 if shareholders approve the deal.
The Adheris platform is currently connected to about 25,000 pharmacies in the USA, and the addition of MedAdvisor's complementary digital product suite is set to accelerate its growth.
Adheris President John Ciccio will run the combined MedAdvisor and Adheris business in the USA.
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