MedAdvisor Shows Record Revenue Growth in Quarterly Activities Report

MedAdvisor Limited (ASX:MDR) Australia’s leading digital medication management company, has reached record revenue of $1.32 million, an increase of 77% on the September quarter.

Financial & Corporate

The 77% increase was driven by significant growth across all key metrics in the platform, including the number of pharmacies, the number of patients using the platform and an increase in collections from Patient Engagement Programs (PEPs).

Net operating cash outflows for the quarter totalled $0.77 million, compared to the previous September quarter, which reported net operating cash outflows of $0.71 million.

The company closed the quarter with $5.93 million in cash.

Operational

Over 600,000 patients are using the platform as at 31 December 2016. This is an increase of over 160% from September 2016. This is due to the Healthnotes acquisition plus MedAdvisor’s increased promotional efforts.

Over 45% of Australian pharmacies are now connected to the platform (30% in September quarter 2016).

Following the acquisition of Healthnotes, the Company increased the number of General Practitioners connected to the platform to nearly 4,000 GPs. Post the end of the period the acquisition of OzDocsOnline further strengthened the GP strategy.

Rapid Growth of Patient Engagement Programs

Consistent with MedAdvisor’s strategy to drive awareness and deliver value for pharmaceutical companies, the Company’s PEPs have grown rapidly during this quarter, with 18 medications leveraging educational programs on the platform, up from 8 medications 12 months ago.

MedAdvisor’s PEPs are being utilised by 9 of Australia’s largest pharmaceutical companies, including Novartis, Bristol-Myers Squibb, GSK, AstraZeneca and Pfizer.

Patient Engagement Continues to Grow

The platform’s Tap-to-Refill function is growing faster than patient numbers, and is now processing over $2.5 million worth of script refills each week, and a further ~$1.5 million of scripts ordered via GP Connect. The Company does not receive revenue on these orders.

New patient engagement features such as the Diabetes Ordering and Over the Counter medicines management modules have also been launched to enhance MedAdvisor’s utility.

Expansion of market share and offering through acquisitions

During the quarter, MedAdvisor successfully raised $8 million via an institutional Placement.

Strong interest was received from existing and new investors, with a number of Australian institutions joining the shareholder register. Key pharmacy groups also participated in the Placement, providing industry recognition and positive validation of MedAdvisor’s offering.

The funds have been used for the cash component of the consideration, including transaction costs for the acquisition of Healthnotes. The balance will be used to fuel further growth initiatives domestically and internationally.

The acquisition of Healthnotes brings together the two leaders in medication adherence management, strengthening MedAdvisor’s strategic position, increasing its market share and accelerating its path to profitability.

Post the quarter, the Company announced the acquisition of OzDocsOnline for a total consideration of $150,000. A highly strategic and complementary acquisition, OzDocsOnline will add new services to MedAdvisor’s offering including online consultations, appointment bookings and communication of test results. It also brings relationships with over 100 new clinics and +300 General Practitioners and introduces MedAdvisor to a patient network of +100,000.

Strengthening of management team

The Company further strengthened its management team during the period with the addition of Mr Simon Chamberlain in the newly created role of General Manager - Product & Strategy. His role will be to maximise the awareness of the MedAdvisor platform among all stakeholders including patients, pharmacies, industry bodies, GPs and Government.

Robert Read, CEO of MedAdvisor commented:

“This has been a terrific quarter for the Company. The integration of Healthnotes is progressing well, and we look forward to launching an even better pharmacy product this year. Patient engagement programs have proven to be incredibly popular among manufacturers and patients, and this will be an important driver of our future cash flows.”

“With the launch of GP Link this year, we are focused on growing the platform. Our acquisition of OzDocsOnline has provided us with a strong network of clinics and GPs to leverage. Our focus remains on reaching more people with MedAdvisor domestically, building a solid foundation for our business.”

MedAdvisor’s Quarterly Activities Report in full is available on the Australian Securities Exchange: http://www.asx.com.au/asxpdf/20170116/pdf/43fbl097njfgjp.pdf

About MedAdvisor

MedAdvisor is a medication management platform focused on addressing the gap and burden of medication adherence. The highly automated and intuitive Australian software system connects patients to their local pharmacy, providing them with real time access to their personal medication records. Available free on mobile, the platform incorporates features including reminders and pre-ordering of medications, which together improves adherence by approximately 20%.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170123006224/en/

Media and Capital PartnersCaroline Zielinski, [phone] [e-mail]