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MedAdvisor raises A$17.0 million in Placement with Investment Led by Leading US Healthcare Solution Provider HMS

Melbourne, 7 October 2019 --- MedAdvisor Limited, Australia’s leading digital medication management company is pleased to announce that it has successfully raised A$17.0 million through a Placement (“Placement”) of 340,000,000 fully paid ordinary shares (New Shares) to cornerstone, sophisticated and professional investors at $0.05 per New Share. The New Shares are expected to be issued and commence trading on 14th October 2019. These New Shares will be issued under the company's existing placement capacity in accordance with Listing Rules 7.1 and 7.1A and will rank equally with all other ordinary shares on issue.

The Placement received strong demand from institutional investors, with leading US healthcare analytics and technology business HMS, taking a pivotal cornerstone position of A$11.0 million alongside Australian institutional investors.

This funding provides MedAdvisor with the capital required to execute identified opportunities in each market and to move to cash flow break even. Use of funds will include continued investment in MedAdvisor’s technology, sales and support to drive success in the US and the UK and support the Zuellig joint venture in South East Asia. In addition, funding will help drive domestic growth through sales and marketing to build on MedAdvisor’s market leading position with pharmacies and Australian consumers, and technology development to capitalise on the legislative shift to ePrescribing in Australia.

Upon the completion of the transaction, HMS will be the largest shareholder in MedAdvisor with ~13% of the ordinary shares on issue, strengthening the register, joining existing strategic investors, EBOS Group and Sigma.

About HMS

HMS is a leader in healthcare payment accuracy and population health solutions with a significant US national footprint, including services to US federal government agencies, 40+ Medicaid agencies, 325 health plans, and more than 150 employer health programs.

HMS is actively working in the Australian market as the lead US partner of the Digital Health Co-operative Research Centre (“Digital Health CRC”), the largest digital health research co-operative in the world, with funding from government, universities and businesses totalling over $200m (including funding from the Australian Government to cover a seven-year period from 2018).

HMS is using its extensive patient engagement expertise to address several global healthcare behavioural challenges. MedAdvisor’s existing Australian business, capabilities and platform are well positioned to help support HMS’ goals of delivering innovative solutions that help healthcare organisations reduce cost, improve health outcomes and enhance patient satisfaction.

Expanding MedAdvisor’s US Opportunity

MedAdvisor’s Health Programs are designed to drive quality use of medicines, health literacy and medication adherence amongst patients through digital and in-person interactions and interventions. Through its partnership with Adheris in the US, MedAdvisor is marketing digital adherence programs (“DAPs”) to pharma companies who want to communicate with over 190m US patients through relationships with >26,000 pharmacies. 

HMS brings a proven expertise in supporting health funders, including health insurers and governments, to improve patient health outcomes and reduce costs. Coupled with MedAdvisor’s proven expertise in the distribution of digital Health Programs, the partnership with HMS immediately extends the potential funders of MedAdvisor digital Health Programs to include US health plans and other health payors.

New Board Member

Mr Jeff Sherman, CFO and Treasurer of HMS, will join the board of MedAdvisor. Mr Sherman has more than 30 years of experience in the healthcare industry in key leadership positions. For the last 5 years Mr Sherman has been CFO and Treasurer of HMS Holdings Corp responsible for financial operations, corporate strategy and development. Previously Mr Sherman served as executive vice president and CFO of AccentCare, and executive vice president and CFO of LifePoint Hospitals Inc. Prior to that, he held senior finance and risk management positions at Tenet Healthcare Corporation.

Robert Read, CEO of MedAdvisor commented: We are delighted that MedAdvisor’s strategy to leverage our patient health platforms in the US, Asia & most recently in the UK is endorsed by investors. This increased global reach is attracting high quality investors and to raise this funding at a premium provides strong endorsement.”

Mr Read continued “HMS is an innovative healthcare solutions company that is expert in patient behaviour and analytics. HMS is also active in Australia, being the largest private partner of the Federal Government’s Digital Health CRC, which will provide opportunities to validate joint solutions. We are pleased to welcome Jeff Sherman to the board of MedAdvisor.” 

Bill Lucia, Chairman and CEO of HMS commented: “HMS is building a diversified solutions business that is expert in identifying and addressing healthcare risks and cost; helping to build healthier population and sustainable healthcare systems. We continue to actively expand our solutions through internal product development and select, strategic acquisitions and investments. Our global search for innovative capabilities identified MedAdvisor for the services they can deliver to augment our offerings in both the US and Australia. We are looking forward to actively working with MedAdvisor to build significant value.”



About MedAdvisor

MedAdvisor is a world class medication management platform that empowers users to more simply manage their medication and improve adherence. MedAdvisor’s highly automated and intuitive software system connects users to tools and education materials from their local/preferred pharmacy. In Australia, MedAdvisor has connected over one million users through ~55% of Australian pharmacies and a network of thousands of GPs. MedAdvisor has recently partnered with Adheris in the US, Zuellig Pharma in Asia and launched into the UK on track to become one of the largest players in the global digital adherence market. In 2018, was recognised in the AFR Fast 100. 

About HMS

HMS was founded in 1974 and is based in Irving, Texas.

HMS advances the healthcare system by helping healthcare organisations reduce costs and improve health outcomes. Through industry-leading technology, analytics and engagement solutions, HMS saves healthcare organisations billions of dollars annually while helping consumers live healthier lives. HMS provides a broad range of coordination of benefits, payment integrity and population health management solutions that move the healthcare system forward.

A publicly traded company (NASDAQ: HMSY), HMS has more than 2,500 employees in 25+ offices across the US. For more information, visit hms.com.