Why the Medadvisor (ASX:MDR) share price is up 11% this week

The Medadvisor share price is soaring higher this week as the company announced its quarterly report. We take a closer look.
The post Why the Medadvisor (ASX:MDR) share price is up 11% this week appeared first on The Motley Fool Australia. –

medical asx share price represented by doctor giving thumbs up

Medadvisor Ltd (ASX: MDR) shares are performing strongly this week after the company released its quarterly report yesterday. The Medadvisor share price jumped 19.12% to 40.5 cents as the update for the quarter ending 31 December 2020 hit the ASX on Thursday.

However, the small-cap medical management platform’s share price has since pulled back to 40 cents at the time of writing.

What’s driving the Medadvisor share price?

The Medadvisor share price has been on the move after the company announced record operating revenue. Full year revenue for the company was $56.1 million, up 24% on the prior corresponding period. However, stealing the headlines was the company’s half year revenue of $34.3 million. This equates to a rise of 79% over the prior half.

In terms of operating cash flow Medadvisor reported cash receipts of $10.7 million for the quarter. These results were largely driven by strong performance in the company’s US subsidiary Adheris, which it acquired in November 2020. As such, Medadvisor closed the quarter with $21.2 million in cash.

Furthermore, Medadvisor expects demand for vaccination delivery via retail pharmacies to grow, which will accelerate growth in the company’s US health services. Medadvisor’s vaccine program product was its highest revenue generator in 2020.

Management comments

Medadvisor CEO and Managing Director Robert Read welcomed the news saying:

This quarter validates the strong financial performance of Adheris and the opportunities that are available from MedAdvisor ownership. As a result, our revenues are up 188% year-on-year and approximately 80% of our revenue is now generated in the US. We are now working with our global customers at scale across multiple regions.

About the Medadvisor share price

Medadvisor is a management platform that aims to simplify the process of taking medication. The company uses its software to connect users to tools and education materials from their preferred pharmacy.

Medadvisor operates across three main countries. In the US, its program can reach 1 in 2 Americans for opt-out health programs via approximately 25,000 pharmacies. This was made possible by the company’s acquisition of US-based Adheris for US$27.5 million.

In Australia, Medadvisor has connected over 1.8 million users through 60% of Australian pharmacies. The company has also recently launched into Asia and the United Kingdom.

The Medadvisor share price has risen over 11% year to date but is still trading more than 40% lower than its 52-week high achieved in May last year.

Based on the current Medadvisor share price, the company has a market capitalisation of around $122 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Daniel Ewing 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Medadvisor (ASX:MDR) share price is up 11% this week appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!