The MedAdvisor Ltd (ASX:MDR) share price was a strong performer on Friday and jumped as much as 9% higher. Here’s why…
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The MedAdvisor Ltd (ASX: MDR) share price was a strong performer on Friday.
The medication management platform provider’s shares were up as much as 9% to 42.5 cents at one stage.
The MedAdvisor share price ultimately ended the day 6.5% higher at 41.5 cents.
Why did the MedAdvisor share price shoot higher?
Investors were buying MedAdvisor’s shares on Friday after the release of a positive announcement relating to its US activities.
According to the release, the company has extended its US digital secure messaging pilot with a major top 10 global pharmaceutical company. It will now continue through until the end of calendar year 2021.
Management advised that the program, which is a partnership with its newly acquired Adheris business, is worth US$800K (A$1.1 million) based on estimates of patient reach. Though, this is incremental to any revenue earned in 2020 from the previously announced pilot.
The partnership between Adheris and MedAdvisor was designed to bring secure digital health programs to a subset of the Adheris network. This network extends to 25,000 pharmacies and can reach 1 in 2 Americans on an opt-out basis. The company expects the program to run through up to 25% of the Adheris network.
The product, which is marketed by Adheris in the US as inMotion, sends a text message to patients on a specific and targeted drug to allow a patient to then access a secure website with important information about their medication.
The pharmaceutical company undertaking the pilot originally went live with five products and has since added a sixth product.
Adheris President and incoming MedAdvisor US President & CEO, John Ciccio, commented “We’ve set up a strong pipeline with a range of top tier pharmaceutical companies this quarter. Our integrated, digital product which was developed between Adheris and MedAdvisor is receiving positive feedback in the market with this pilot program renewing for increased scale year on year.”
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James Mickleboro 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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.