Strong Growth in Patient Engagement Programs and Progress Update on International Expansion Strategy
Highlights:
- FY19 has started strongly with 2 new Top 10 pharmaceutical manufacturers commencing programs through MedAdvisor
- Strong growth of MedAdvisor’s Patient Engagement Programs (PEPs), with 33 programs either active or in progress.
- PEP programs currently utilised by 16 companies, 7 of which are in the top 10 global pharmaceutical companies; with local affiliates of GSK, UCB and AstraZeneca continuing with their programs for a third consecutive year.
- Growth driven by expansion of connected patients - MedAdvisor now offers manufacturers the ability to tap into more than 7 million Australians through the Health Services Hub.
- YTD FY19 MedAdvisor has entered into agreements with pharmaceutical companies that represents 76% in value of the total agreements entered into FY18.
- These agreements include one client PEP contract which is the largest in MedAdvisor’s history1.
- International technology build progressing as planned, with new capability for a global platform
to also provide benefits to Australian market.
MedAdvisor Limited (ASX: MDR), Australia’s leading digital medication adherence company, is pleased to provide a business update on the growth of its Patient Engagement Program (PEPs) and International Expansion activities and investment.
Patient Engagement Programs
MedAdvisor’s ability to provide pharmaceutical companies the unique opportunity to distribute education and awareness information for hard to reach patient populations, continues to drive revenue growth for the Company. This also drives significant value to pharmaceutical companies as they have a cost-effective way to deliver critical quality use of medicines information to their patients.
Generally, pharmaceutical companies are legally constrained in the Australian market in terms of communicating directly to patients, they may only deliver medication information to a patient that they know has been prescribed their specific medication. As such, options to support patients through programs have been limited to expensive to deliver methods such as paper inserts in product packaging and/or directly via doctors and pharmacists; which is not always the most effective or engaging method to support patients.
1 The terms are Commercial in Confidence and not considered material to the share price
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Through its connected platform MedAdvisor is providing pharmaceutical companies with the ability to directly engage digitally with these targeted patient groups. These patient engagement programs deliver highly relevant content to patients and as a result have been shown to lift medication adherence by 30%+, improving quality use of medicines and leading to better health outcomes. From a patient perspective it is the right message and content arriving at the right time, via a medium that is easy to access.
The new Health Services Hub (HSH), which is a marketplace for pharmaceutical programs; also allows pharmaceutical companies to run face to face programs with specific cohorts of their patients (Pharmacy Intervention Programs (PIP)) through MedAdvisor pharmacies. The HSH, which forms part of the MedAdvisor Pharmacy Console; serves MedAdvisor pharmacies with opportunities to deliver PIP’s to the specific cohort of patients that custom their pharmacy. The HSH has custom MedAdvisor developed algorithms that identify suitable patients; help pharmacists recruit, book, record the intervention and then claim for the service from the appropriate program funder. This provides MedAdvisor with an opportunity to engage with over 7 million Australian’s that have prescriptions dispensed at the extensive MedAdvisor pharmacy network.
Currently, MedAdvisor is delivering programs for 16 clients, which includes 7 of the world’s largest pharmaceutical companies (by revenue), including local affiliates of GSK, UCB and Astra Zeneca, who are already into their 3rd consecutive year running their growing list of programs successfully on the MedAdvisor platform.
Sales progress
FY19 has started strongly with Annualised Contract Value (ACV) already at 76% of the ACV of agreements sold in FY182. We have also entered into agreements with two new Top 10 pharmaceutical manufacturers and have been contracted by one existing client to add programs for 4 brands not previously delivered through the platform which has increased the contract value 3x compared to FY18. The Company currently has 4 pharmacist intervention programs (PIP’s) in market being delivered via the Health Services Hub and strong interest for more programs to be implemented in the coming months.
As the patient network continues to expand, the Company is targeting further growth of its PEPs that will inevitably attract more interest as the potential audience reach increases.
International progress
The progress on the globalisation of the MedAdvisor platform has begun with the business successfully expanding its resource base to deliver on this important work. A number of internal milestones both technical and compliance have also been met which will provide value for MedAdvisor in Australia and markets abroad.
Technology: MedAdvisor has extended the capability of the MedAdvisor App to be multilingual which is important in non-English speaking countries or countries that have multiple language expectations. We have also improved the base technology platform that will make deployment into new markets easier to achieve.
2 Revenue is recognised progressively with these contracts from the go live to end of contract (typically 12 months post launch)
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Compliance: MedAdvisor has been successful in building the processes and systems to be ISO270013compliant and MedAdvisor will be seeking certification during CY19. In addition, for the US market, MedAdvisor has been designing the platform to be HIPAA4 Compliant. In both the US and UK markets, higher privacy and security expectations have been translated into regulations, which means that the investment made in these areas will also benefit customers in the Australian market in time as standards in Australia reach parity.
The business is encouraged by the market development work and the confidence that MedAdvisor can meet needs that are currently unmet in the target markets. MedAdvisor is aiming to be deployed successfully in an overseas market by Q2 CY19.
Robert Read, CEO of MedAdvisor commented: “MedAdvisor has worked hard to consolidate a fragmented industry, which has 3500 owners and 13 dispense systems. Due to our digital connectivity, sophisticated algorithms and automation we can help program funders access hard to reach and highly targeted populations, both digitally and with face to face interventions within a pharmacy. This is a strategy that has global potential and need. Our global technology will provide the right scalability and framework to execute and I am pleased to say that we remain on track and on budget with this initiative.”
FY19 has started strongly with Annualised Contract Value (ACV) already at 76% of the ACV of agreements sold in FY18.Does this suggest in just 5 months they have hit 76% of revenue earned from the previous financial year?
If so, yowsers!
