Medadvisor (ASX: MDR) – medication and adherence platform
COMPANY SCOREBOARD
| Pro Plus | Pro | Con Plus | Con |
|
|
ABOUT COMPANY
MedAdvisor (MDR) (https://www.medadvisor.com.au/) develops and delivers software for personal medication management in Australia and USA. It develops and deploys MedAdvisor, a medication and adherence platform that connects health professionals with patients using mobile and web technologies.
In November 2020, the company expanded to the USA via acquiring Adheris, LLC for up to US$34.5M ( AUD$49.0M@70c exchange) including US$7m earn-out based on revenue growth in Q3/Q4 FY20 and FY21 respectively.
In July 2022, the company acquired GuildLink from The Pharmacy Guild of Australia by placing $9.14m@16c to them. The Guildlink generated $7m and $7.5m revenue in FY21 and FY22 respectively.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| MDR | 0.26 | 551293912 | 143336417.12 | 9.7/(18) |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 3180 | 80.48% | 77.6% | 2.85% | last raise $23.7m@14c;$5.25m@30c; pre raise $45m@38c |
In 2019, the company had 7 to 1 share consolidation.
In April 2021, it signed up a $12m loan facility (Due Dec 24) at a 15% interest rate to pay off the Convert Note and Earn-Out associated with the USA acquisition.
In November 2021, a director sold 6.8m (1/3) shares@36c from Kojent, the 5th largest holder.
Guild Group 95m (14c) is the largest shareholder; US health data analysis company Cotiviti holds 44m (38c), and EBOS holds 5% (40c in 2017, at the time, it was a largest holder at 14.1% of MDR’s then market cap of $67m) as well.
In June 2022, CFO resigned.
BUSINESS
Below is the company’s past five years performance:
| MDR | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue | 97963 | 67750 | 38773 | 9603 | |
| Cost of Sale | -38554 | -32758 | -17467 | -1221 | |
| Gross Revenue | 59409 | 34992 | 21306 | 8382 | 0 |
| Gross Margin | 0.6064 | 0.5165 | 0.5495 | 0.8729 | 0 |
| Overheads | -62238 | -46280 | -36407 | -19002 | |
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -62238 | -46280 | -36407 | -19002 | 0 |
| Operation Profit | -2829 | -11288 | -15101 | -10620 | 0 |
| Other Revenue | 51 | 2023 | 435 | 1520 | |
| Interest Expense | -2134 | -1542 | -422 | -115 | |
| D&A | -5353 | -4900 | -3211 | -512 | |
| Income Tax | -790 | 240 | 2855 | ||
| Net Profit | -11055 | -15467 | -15444 | -9727 | 0 |
| NOTES |
The company will need more than $100m revenue to break even.
In Australia, the company’s primary revenue is from PlusOne Pharmacy Software; it receives about $2,100 per pharmacy per year (ARR plus fees). There are 5,700 pharmacies in Australia; MDR has a market share of 65% in 2021. In July 2022, it acquired GuildLink, a direct competitor. As a result, the company’s software will cover 5,000+ pharmacies (or 90% of the market) and 2.9m+ patients, which would have generated over $21m in revenue in FY22. Furthermore, It will be in a position to exercise its market power to lift fees (fee was increased in mid 2023).
Its USA business model is yet to be analysed.
SUMMARY
After acquiring Guildlink, the company would monopolise the Australia digital health market.
If the company is confident with its cashflow, it would have paid its very expensive loan.