The Medadvisor Ltd (ASX: MDR) share price was one of the best performers on the Australian share market on Thursday.
The digital medication management company's shares rocketed as much as 28% higher at one stage to a record high of 47.5 cents, before ending the day 23% higher at 45.5 cents.
Why did Medadvisor's shares rocket higher?
On Thursday Medadvisor announced that it has signed its second agreement in the United States. This agreement will see it provide medication education programs for a top 10 global pharmaceutical company through its strategic partner Adheris Health.
MedAdvisor is unable to name the pharmaceutical company, but it has been able to disclose its top 10 global status and that it has revenues in excess of US$20 billion.
According to the release, MedAdvisor will execute four pilot programs through a total of up to 4,000 U.S. pharmacies in partnership with Adheris Health.
The initial pilot phase will allow for program design, execution refinement and validation. After which, once the initial pilots have been successfully executed, management expects there to be an opportunity to increase their scale by adding additional pharmacies.
These initial pilot programs represent the first material revenue from its US expansion. The release explains that the gross revenue that will be recognised by MedAdvisor through the four pilot programs is expected to be A$825,000 over the next 12 months.
Management believes this is an important milestone in the commercialisation and scale of the US market opportunity.
What is MedAdvisor's Digital Health Programs platform?
The MedAdvisor Digital Health Programs platform interprets complex medication patterns, administers and curates health content in a compliant way, manages millions of patients uniquely, and renders and delivers messages optimised to each device so patients receive the right information at the right time.
In Australia, the company has worked with over 20 different Digital Health Program clients, including 8 of the top 10 Pharmaceutical companies, to fund digital and in-pharmacy programs designed to help patients take their medication safely, effectively and on time.
Management notes that the results of these programs have demonstrated significantly improved medication adherence.
MedAdvisor's CEO, Robert Read, was pleased with the development and sees a major opportunity in the U.S. market.
He said: "We have built a great platform to help people take their medication more effectively. The problems with non-adherence to medication in the US are estimated to cost 120,000 lives per annum."
"Strategically the US market is enormous and with our partnerships with Adheris and HMS, the opportunities to approach a very large addressable patient pool and generate revenue at scale over the next 3-5 years is significant. This second US agreement will generate estimated revenues of AU$800,000+ through a small subset of Adheris' total network is a preview of the scale that these partnerships can deliver," he concluded.
