MedAdvisor Announce HY19 Interim Results

Melbourne, 26 February 2019 -- MedAdvisor Limited (ASX: MDR, the Company, has released its Appendix 4D and is pleased to provide its Financial Report for the 6-month period ending 31 December 2018 (H1 FY2019).

Financial Overview

Revenue from continuing ordinary activities of $3.88m, up 19% on the prior corresponding period. Total revenue was $3.96m and the Company continues to operate at a high gross margin of 87.6% in line with prior periods and management expectations.

The strong revenue growth compared to the prior period has been driven by significant pharmacy network growth. The company has ~3,200 pharmacies connected to the platform. This growth has resulted in more SaaS revenue and more patient growth in Patient Engagement Programs.

 Due to continued growth in the SaaS based revenue streams from a growing pharmacy base has resulted in SaaS based fees climb to 65% as a percentage of total (H1 FY18 was 61%), with User Based revenue equating to 35% of revenue.

 

Gross margin performance of 87.6% means that the growth in revenue supports the investments the business is making in new markets both locally and abroad that will deliver revenue in future periods.

Financial Performance Overview

 

Metric	HY FY 17	HY FY18	HY FY19	18/19 growth %
Operating Revenue	$1.5m	$3.2m	$3.9m	19%
Gross Margin	83%	88%	87.6%	~
Core Business EBITDA	($1.24m)	$0.2m	$0.98m	376%
Investment Opex	$2.0m	$2.4m	$5.4m	126%
Reported EBITDA	($2.0m)	($2.2m)	($4.4m)	103%

Source: MedAdvisor

 

Australian Operational Overview

Source: MedAdvisor

Over 1,100,000 patients were connected to MedAdvisor’s platform as at 31 December 2018. The opportunity to help another 11m patients in Australia who live with a chronic disease is a key focus for the Australian business.

Revenue from Patient Engagement Programs (PEPs) increased by 16.4% compared to the same period last year. The growth of our patient user base continues to drive Australia’s largest medication manufacturers to MedAdvisor with a total of 33 programs contracted to the platform over the period.

MedAdvisor serviced 17 manufacturers over the period, three of which have now been working with MedAdvisor for three years, to communicate with patients and improve their health. This follows strong growth in 2017 and MedAdvisor had a record month for PEP billings in December 2018, for which revenue will be recognized in future periods.

MedAdvisor’s Health Services Hub can facilitate face-to-face intervention and education programs alongside digital engagement programs to improve the health of relevant patient populations. This means that not only can these program funders run targeted programs to the 1.1m digitally connected patients, they can access a further ~7.6m in-store.

Services, including Government funded 6CPA programs recorded in PlusOne by MedAdvisor grew strongly at 280% on the prior year, highlighting significant growth in pharmacies broader engagement with the platform through the Health Services Hub.

 

Technology Enhancements

MedAdvisor is now ISO27001 compliant and we have aligned our compliance program to address the US HIPAA (Health Insurance Probability and Accountability Act) regulations. This investment is supporting business development activities and will result in a global market ready platform available in April that is equipped for deployment and revenue generation. The new platform will be deployed in Australia in time, and the new security and compliance practices will deliver immediate improvements.

 

International Expansion

The Company is investing to expand its business internationally. MedAdvisor is now two thirds of the way through its initial international scale up spend which is due to be finalised in Q3 2019. The work performed so far is on plan and on budget. This investment will deliver significant benefits to the business, both domestically and as we scale up internationally, streamlining our offerings in multiple markets. The Global Health Services Hub product has a wide application and is built on an efficient updated technology platform.  

US

Founder, Mr Josh Swinnerton, has relocated to the United States, joining the team there, and will play a key role in developing the product for market entry, leveraging his deep understanding of the business and background in the US market.

MedAdvisor appointed Mr Jim Rotsart and Mr Luke Merrow as US based executive advisors with extensive expertise in patient engaging health services to further power the US business. Jim and Luke are highly experienced and networked in the key focus areas for MedAdvisor in the US being pharmacy chains, manufacturers and insurers, providing valuable in market relationships to MedAdvisor.

Asia

MedAdvisor announced the signing of the MOU with Zuellig Pharma (announced: 3 December 2018) defining the framework for a 50/50 Joint Venture to enter 8 Asian markets. Zuellig is a ~US$12B turnover business focusing on wholesale distribution of medicines, medication adherence programs and diversified healthcare. Zuellig distributes to ~350,000 pharmacies, GP’s and Hospitals in these countries with a market of over 560 million people, providing an outstanding opportunity for MedAdvisor. MedAdvisor expects to sign the long form documents in Q3FY19.

 

Corporate update

During the half, MedAdvisor announced the introduction of its Clinical Trial Recruitment (CTR) service to existing and new clients. MedAdvisor can identify suitable patients for clinical trials that will help accelerate access to new and novel medicines in Australia. With 80% of clinical trials experiencing a delay due to patient recruitment, MedAdvisor has an important role to play in this $2bn industry.

In September, MedAdvisor appointed, Ms Ruba El-Afifi to the role of EGM People & Culture. Ruba has a history in senior HR roles and most recently from Oracle’s Aconex where she was GM Human Resources.

In December the company signed an agreement with Thrivor a SaaS platform delivered through web-browser and app interface focused on assisting patients and their families when dealing with a serious illness. The administration portal is designed to assist health institutions manage communications, appointment facilitation and payments for outpatients.

MedAdvisor was awarded 5% of the Equity in Thrivor for work completed during the half.  Further commercial opportunities with this partnership will be through Clinical Trial Recruitment and support via Patient Programs.

Mr Robert Read said “Domestically we are continuing to add more breadth to our pharmacy and GP offerings to increase engagement with these core customer groups and our network continues to expand. Globally, the business is laying the right foundations for international expansion and we will have our product ready for the US market this financial year. Our new Health Services Hub will allow us to run medication programs to highly targeted patient populations around the globe including in South East Asia through our new partnership with Zuellig Pharma.”

---ENDS---

 For More Information

Jennifer Duraisingam Corporate Communications Manager Tel: +61 3 9095 3036 jenniferd@medadvisor.com.au

About MedAdvisor

MedAdvisor is a world class medication management platform focused on addressing the gap and burden of medication adherence. Founded with a desire to simplify medication management, the highly automated and intuitive Australian software system connects patients to their community pharmacy, providing them with real time access to their personal medication records. Available free on mobile and internet devices, the platform also incorporates a variety of valuable and convenient features including reminders and pre-ordering of medications, which together improves adherence to chronic medications by approximately 20%.

Since launching in 2013, MedAdvisor has welcomed over one million users through its connections with ~55% of pharmacies and a network of thousands of GPs across Australia. MedAdvisor was recognised in the 2018 AFR Fast 100 at position 23.