The MedAdvisor Ltd (ASX: MDR) share price is up 8.22% to 40 cents after the medtech company released second-half results for its newly acquired Adheris subsidiary. The results show that Adheris is performing stronger than expected.
What did MedAdvisor say?
MedAdvisor said Adheris’ second half results up to October were higher than expected, and up 74% on the same period last year. Adheris booked $10.9 million in revenue for the first four months of the second-half of FY20. This compared to $6.3 million for the same period in FY19.
The company also advised that the first 4 months of its overall FY20 sales had already exceeded total sales of USD $10.4 million in the second half of FY19. MedAdvisor told the market it was currently on a high run-rate considering that the total second-half revenue forecast for Adheris was USD $13.8m.
MedAdvisor’s US President, John Ciccio, commented on the results saying:
We have recorded strong performance in H2 with October being our biggest month in the past two years. These results have set us up for strong momentum to see out the remainder of the financial year.
Under MedAdvisor’s ownership, we’re excited to have the focus and investment to grow the Adheris business, providing tech-driven offerings to our clients.
What is MedAdvisor and Adheris?
MedAdvisor is a software systems developer focused on the medical industry. Its app connects to pharmacy dispensing systems to automatically retrieve medication records. It also drives an information reminder system to ensure correct medication use for its patients.
Just over a week ago, the MedAdvisor announced that it had purchased the United States-based Adheris Health. This acquisition was made to leverage on Adheris’ customer base and bring digital health programs to its network. Adheris’ network extends to 25,000 pharmacies, and potentially gives MedAdvisor access to a massive US market with an addressable network of 180 million patients.
At the time the MedAdvisor chief executive Robert Read says the purchase was a “transformational” deal for the company.
About the MedAdvisor share price in 2020
The MedAdvisor share price has had a choppy year of trading. It started the year at 35 cents before reaching a high in May at 65 cents. The share price has since fallen to today’s level of 39 cents. At this price, the company commands a market cap of $134.4 million.
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Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MedAdvisor. The Motley Fool Australia has recommended MedAdvisor. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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