LISTED digital medicines management company MedAdvisor put considerable effort yesterday into presenting to potential and current investors its track record and future ambitions.
CEO and MD Robert Read highlighted the company's success, speaking of its high margin, recurring revenue "software as a service" (SaaS) business with more than 1.1 million connected users and over 55% of the Australian pharmacy market as customers.
The other focus of the company relates to its global expansion and its recently announced international Co-Marketing Agreement with pharmacy dispensing software group PDX (PD 21 Jun 18) and Zuellig Pharma in South East Asia (PD 04 Dec 18).
Zuellig Pharma is a $12b business providing pharmacy and medical services to more than 350,000 medical facilities.
Read pointed to the current 3,200 pharmacies currently using MedAdvisor, the 19% revenue growth to $3.88m with 65% of revenue recurring and gross margins up to 87.6% in the half year 2019.
Looking ahead, Read trumpeted the company's strong financial position with gross margins exceeding operating expenses, targeting growth in new markets, the EBOS investment of $9.5m and cash reserves of $7.5m (HY19) to fund existing expansion initiatives in Australia and the USA.
He highlighted the estimated $630 billion global cost of medication non-adherence, with just 54% of chronic patients in Australia not using MedAdvisor complying with medication regimes.
Other key drivers for the business included reduced government payments to pharmacies meaning they need to sell more services, and the "threat of Amazon [which] means pharmacy needs improved links with patients and convenience services with digital technology, which MedAdvisor provides".
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