The Medadvisor Ltd (ASX: MDR) share price is surging higher today after the company provided an update on the role it is playing in the coronavirus outbreak.
After rocketing as much as 42.86% higher to $0.45 in early afternoon trade, MedAdvisor shares are now sitting at $0.39 at the time of writing, up 23.81%.
MedAdvisor is an Australian software systems developer. The company has a free app that connects to pharmacy dispensing systems to automatically retrieve medication records and also links to a training, information and reminder system to ensure correct medication use.
What did MedAdvisor announce today?
Today, MedAdvisor announced that it will enable Australian pharmacies to receive and process requests for medication delivery through its MedAdvisor App. The company will also offer pharmacies a temporary discount to the cost of its messaging service to all of their patients and enable patients to order from home.
Additionally, MedAdvisor will provide any pharmacies that are not a current customer an initial two month free trial of its platform. Currently, 60% of all pharmacies throughout Australia use its service.
How MedAdvisor can help the current healthcare crisis
MedAdvisor noted that it is set to play a crucial role in facilitating pharmacy home delivery following recent Federal Government funding. Last week, the Government announced it will provide $25 million to support pharmacies to home deliver medications, ensuring that isolated people can get the pharmaceutical items that they require by filling in their prescriptions remotely.
MedAdvisor further noted that patients have the option to remotely order prescriptions from a GP via its app. By pre-ordering in advance, this improves pharmacy workflow by helping pharmacies to more efficiently manage stock and also takes some burden off a stretched GP system.
In addition, Australian pharmacies can send or receive messages to patients through the MedAdvisor App and its partner apps provided by a range of Australian pharmacy chains including Amcal and Terry White.
Strong increase in ordering platform over the past week
MedAdvisor noted a significant increase in orders per pharmacy over the past week, particularly in the last 2 days.
To date, 57% of orders through the company's platform occur outside of normal business hours and MedAdvisor is expecting the volume of orders to increase significantly.
Recap of recent financial results
At the end of February, MedAdvisor reported its half year FY 2020 results, revealing operating revenue of $4.4 million, up by 14.4% on the prior corresponding period of 1H19.
Gross profit increased 14.4% to $3.9 million during the period, while gross margins remained stable at 87.6%. MedAdvisor commented that the international markets in which it operates represent a significant opportunity for growth.
