Following a notable US performance, integrating conversational AI and increased pharmacy transaction fees in Australia, medication management platform MedAdvisor Solutions (ASX: MDR) has reported a strong third quarter in FY24.
The December to February period in the US is typically the flu season, placing importance on getting vaccinated. This proved beneficial for MedAdvisor. In the US, vaccine-related programs continued across brands and categories. These programs made up 35% of Q3 FY24 US revenue. Digital patient engagement solutions represented almost 36% of revenue, compared with 24% in Q3 FY23.
MedAdvisor’s omnichannel adherence solution THRiV gained traction among American clients, who recognised the ROI benefits of providing a more targeted mix of traditional and digital communications to pharmacy channel customers.
MedAdvisor Solutions has increased its projected share of US revenue for THRiV to 18% in CY24, up from 3% in CY23. At the end of Q3, US projected revenue for Q4 FY24 had been fully contracted, and a healthy pipeline remains in place for opportunities across the remainder of FY24 and into FY25.
MedAdvisor Solutions CEO Rick Ratliff said, “We are delighted to report another very strong quarter, building on MedAdvisor Solutions’ momentum from the first half of FY24, with reporting in line with the expected seasonality of the US business.
“Growth through the quarter was driven by continued emphasis in the US on vaccine programs and expansion of other chronic medication programs within existing pharmaceutical customers. Margins improved in the US due to increased demand for THRiV, our US-focused omni-channel solution.”
In Q3 FY24, MedAdvisor reported a surge in its overall operating revenue, up 42.4% on Q3 FY23 to $24.2 million. Revenue for its US arm was up 57.6% to $18.6 million; in ANZ, it was up 7.7% to $5.6 million. Its gross profit increased by 48.5% to $15.3 million.
Ratliff added, “In Australia, pharmacy transaction fees which went live from 1 March, contributed 14.9% growth in that revenue line. This is an important development, which we expect to see build over time to complement our SaaS licenses and health programs, and will help the company continue to invest in our global infrastructure enhancement roadmap. We also completed the initial enhancements require to support the launch of the North Queensland Community Pharmacy Scope of Practice Pilot, which is expected to launch early [Q4].”
MedAdvisor’s FY24 YTD revenue is $99.8m, up 23.1% on PCP and already exceeding full-year FY23 revenue. The YTD gross profit saw a 20% uptick on PCP to $58.7m. The Company had cash of $19.5 million as of 31 March 2024, which aligns with the internal forecast.
It also announced a partnership with Brand Engagement Network (BEN) to bring conversational AI to patients through its pharmacies via the new 24/7 Medication Advisor platform. Ratliff noted that the Company has identified several opportunities where AI can positively contribute to the MedAdvisor Solutions business, starting with the BEN integration.
As the Australian flu season kicks off, it is expected to contribute to an increasing transaction revenue stream. In keeping with that, MedAdvisor is set to launch an initial telehealth solution through the MedAdvisor app.
Alinda is a Business Reporter for The Sentiment
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1 Comment
Shraddha13
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Replyhttps://www.360iresearch.com/library/intelligence/medication-adherence-management-systems