@Deanostock My understanding of the app: A. the pharmacy pays...

@Deanostock
My understanding of the app:
A. the pharmacy pays MDR for the app and they encourage their patients to download as it can retain their medications, repeats, contact details, credit card details and address etc
B. pharmacies can choose to message their patients letting them know their medication has arrived etc....this they pay extra for
C. patients can choose to pay with their stored card and also get things delivered (the patient/pharmacy pays a transaction cost on this)

If you look at their 1H21 results, the MDR app subscription revenues is ~3m (A above), the transaction revenue is ~1.2m (B&C above), and Health program revenue is ~0.8m

Health program revenue is revenues from Pharma companies that come to MDR because so there are many people that are connected to the App (the App may support ~65% of pharmacies, but not all pharmacies use it or encourage their patients to use it). It still seems to have enough patients connected and using it that MDR can leverage that to target patients that may be of interest to pharma companies....i suspect is probably to do with interaction of diff medications etc. I don't think that pharma companies can directly market to patients in Aus, but they can leverage the MDR database to source patients who may want to opt in to doing surveys, opt into trials with doctors advice etc

The business in the US seems to be more to access the data so I suspect they are almost giving the App away for free to pharmacies, and the crown jewel there is the data that they can then access - pharma companies (through Adheris & the MDR app) can see if people are not taking their prespecriptions as they are meant to (i.e. not coming back for repeats etc), but also if enough people use the app, then they can use that data for a whole range of things (marketing, trials etc). This is a much much bigger pie than anywheere on the planet so if they can get traction there (with pharmacies, patients, use of the app etc), then potential is huge.

The challenge is that Aus does not seem profitable (even with 65% of pharmacies), UK is just a slow slow grind (I mean its taken yrs and millions to get to ~50 Pharmacies in June21), and Asia seems a bust. My sense is that health programs in those locations are not lucrative enough so the App and Transactions need to cover costs....it's not even close.

At this stage, the US holds the most promise, but without the App and a digital platform, it all seems quite analogue and expensive and they have to keep on winning contracts each year........they need to get digital traction & the data in the US to succeed.

This is all IMO and what I understand the business does......happy for others more familiar to correct anything above.

ps. I should actually download the app and see how it all works for a start

pps they already have chemist warehouse using the app (it's a white label version - contract signed last year)