MedAdvisor has released its financial update for the three-months period to September 30, posting $1.84m in revenue versus $1.68m in the prior June quarter.
Operating revenue totalled $1.80m. Cash receipts equated to $1.86m, versus $1.36m (+36 per cent) in the prior corresponding September 2017 quarter, says a statement from MedAdvisor.
Net operating cash outflow for the quarter totalled $1.86m versus $976k for the corresponding prior September 2017 quarter and $137k for the prior June 2018 quarter, which benefited from +$634k in government grants and tax incentives. Adjusted net cash flow from operations was $771k, according to the statement.
The increase in adjusted net operating cash outflow of $1.09m includes $268k of expenses relating to the prior quarter and $133k of prepayments. The increase in net operating cash outflow is attributable to the planned scale up in resources required to meet both domestic and international strategic-growth objectives, says the statement.
Cash operating expenses for the quarter totalled $3.5m, which was an increase of $500k on the prior quarter due to investments in R&D activities associated with international expansion and building new channels in the domestic market, including in the GP and hospital sector. This increase is in line with budget, the statement says.
MedAdvisor closed the quarter with $8.7m million in cash. The statement says it is well funded to complete the integration in the US and to advance further expansion in its domestic market.
The company signed an agreement with EBOS subsidiary, HPS, a provider of outsourced pharmacy services to hospitals, to develop an integrated medication-management solution for use in hospitals, marking MedAdvisor’s entry into the hospital market.
MedAdvisor also announced it’s now offering its clinical trial recruitment (CTR) service to existing and new clients. To date, four small trials have been completed using the platform to identify and help recruit suitable patients. With 80 per cent of clinical trials experiencing a delay due to patient recruitment, MedAdvisor says it has a key role to play in this $2bn industry. The MedAdvisor platform in CTR has added another revenue stream that is driven by MedAdvisor’s growing patient base.
MedAdvisor recorded one of the strongest quarters in its history for new pharmacies and its market share of the Australian pharmacy market is now more than 55 per cent with 3,100-plus pharmacies.
MedAdvisor now boasts more than 1.1 million connected users of the MedAdvisor platform and, via its pharmacy software PlusOne, it can access a further seven million users for pharmacist-led programs through its 3,100-plus-strong pharmacy network.
MedAdvisor CEO Robert Read said: “We continue to grow our domestic business while scaling up to take advantage of significant growth opportunities in both domestic and international markets. The opportunity in the hospital market is significant and we’re now focused on developing this offering and simultaneously improving our services and value to GPs.
“We’re optimistic about international opportunities in the markets that we’re focusing on, and are well advanced in the US, with the integration of our platform into PDX’s software progressing on track.”