Another long (opinionated, so DYOR) post below.
- 100,000 new users this quarter (1.1M)
- 55% of pharmacies now connected (big numbers connected this quarter)
- Breaking ground into the UK with approval to integrate platform with NHS
- Swinnerton based out of the US to complete PDX Inc
- Yet to fully exploit Hospital market. HPS now makes that possible.
I also attended the AGM this week. It obviously wasn't as buoyant as last year when EBOS came on board.
From someone on the outside, since that announcement, progress has been slow and perhaps this is more the perception because of the share price, but I'm sure behind the MDR doors there has been lots going on.
HPS, Zest and the Terry White app took well into this year to be finalised. It's only from now (12 months later) the forecast revenue's might start to flow ($4M over 3 years). This is reflected in each of the 4C's.
Management are not happy with the share price. They wish/believe it should be higher. It was 3.7c prior to the EBOS announcement and we're now 3.9c a year later and on top of expansion into the US.
PDX Inc are not contributing to the integration but once complete will be marketing and promoting the platform to their 10,000+ pharmacy base - Giant Eagle, Albertsons, Weis, Lunds&Byerles etc.
They appeared more enthused with the expansion into the UK which might prove an easier target.
There are a lot of shares coming out of escrow but there was commentary the recipients are in for the long haul. Market depth is small and they are conscious of putting this on market and the impact this would have on the share price. Waiting for international expansion to take off which would increase the share price and volume and/or block sales may be the preference.
The big holders Morgan Stanley, JP Morgan, Sigma, HSBC are still very much around and in some cases buying more. Check the FY report.
There's been a lot of jostling in the Healthcare market over the last 12 months. Sigma was ousted from Chemist Warehouse and replaced by EBOS. HealthEngine scored a number of own goals. Department of Health continue to engage TelstraHealth entities to perform integration work despite ongoing issues with previous projects.
Fred IT wins contract for Real Time Prescription Monitoring
https://www.pulseitmagazine.com.au/...ract-to-build-data-exchange-for-national-rtpm
TelstraHealth may be penalised for missing deadlines with Cancer Screening Register
https://www.zdnet.com/article/audit...ination-over-cancer-screening-register-delay/
Management are acutely aware they have hooks into a very large number of different organisations, different healthcare industries and visibility of different pharmaceutical data. These relationships and data is very valuable should a single, much larger entity want to exploit it. MedAdvisor promote independence, hence the deals that are available to them with all of the pharmacies that are working with them.
EBOS have been acquiring heavily over the last few years - Symbion (2013), HPS (2017), MedAdvisor (2017), supplier to Chemist Warehouse (2018).
https://www.copyright link/business...v-up-acquisitions-in-pharmacy-20171213-h03s1h
A side note that isn't ever mentioned in announcements is that MedAdvisor do have a relationship with Chemist Warehouse.
If EBOS or another entity took a large(r) position, I believe Management would be cautious as they have so much on the runway into 2019 and still a lot of cash that they could fetch much more if they wait for the US and UK positions to take shape. It's seen internationally groups like Oracle are buying organisations like MedAdvisor. If EBOS start to grab more up to 19%, (after 19% they have to formally take over), there may be a bidding war. This is my unicorn vision.
