The success of MedAdvisor’s recent share placement is seen by CEO Robert Read as “strong endorsement from investors” after the company raised $17 million this week, despite an 11 per cent premium.
MedAdvisor’s capital raising strategy attracted significant demand from international and Australian institutional investors, with leading US healthcare analytics and technology business HMS taking a pivotal cornerstone position of $11 million.
On completion of the transaction, HMS will become the largest shareholder with a 13 per cent shareholding in MedAdvisor, joining existing strategic investors EBOS Group and Sigma.
MedAdvisor will become HMS’s preferred partner for the distribution of digital health programs in the US and Australia.
In the past year, MedAdvisor has successfully expanded into multiple overseas markets, partnering with companies in the US, Singapore, the UK and through the Zuellig joint venture in South-East Asia.
The capital raised will now accelerate that international expansion through MedAdvisor’s synergistic partnering strategies.
In addition, MedAdvisor says the funding will help drive domestic growth through sales and marketing to build on its market leading position with pharmacies and Australian consumers, and technology development to capitalise on the legislative shift to ePrescribing in Australia.
HMS is promoted as a leader in healthcare payment accuracy and population health solutions with a significant US national footprint, including services to US federal government agencies, 40-plus Medicaid agencies, 325 health plans, and more than 150 employer health programs.
HMS is working in the Australian market as the lead US partner of the Digital Health Co-operative Research Centre, claimed to be the largest digital health research co-operative in the world, with funding from government, universities and businesses totalling more than $200 million, including funding from the Australian government.
HMS is using its extensive patient engagement expertise to address several global healthcare behavioural challenges. MedAdvisor’s existing Australian business, capabilities and platform are said to be well positioned to help support the HMS goals of delivering innovative solutions that help healthcare organisations reduce cost, improve health outcomes and enhance patient satisfaction.
MedAdvisor’s US opportunity
MedAdvisor says its health programs are designed to drive quality use of medicines, health literacy and medication adherence among 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 that seek to communicate with more than 190 million US patients through relationships with more than 26,000 pharmacies.
HMS says it brings a proven expertise in supporting health funders, including health insurers and governments, to improve patient health outcomes and reduce costs.
MedAdvisor’s Mr Read said: “We’re delighted that MedAdvisor’s strategy to leverage our patient health platforms in the US, Asia and, most recently, 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.”
HMS Chair and CEO Bill Lucia said: “HMS is building a diversified solutions business, expert in identifying and addressing healthcare risks and cost, helping to build healthier populations 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’re looking forward to actively working with MedAdvisor to build significant value.”