The MedAdvisor Ltd (ASX: MDR) share price will be one to watch later this week when it returns from its trading halt.
Why is Medadvistor in a trading halt?
This afternoon the medication management platform provider requested a trading halt whilst it undertakes a non-underwritten institutional placement and an accelerated non-renounceable entitlement offer to raise $45 million.
MedAdvisor is aiming to raise the funds at 45 cents per new share, which represents a 12.5% premium to its last close price on 30 October.
The company is launching this equity raising after entering into a binding agreement to acquire Adheris Health for up to US$34.5 million (A$49 million). This represents a multiple of ~1.04 x estimated calendar year 2020 revenue of US$26.4 million.
Management notes that this acquisition will make it a leader in tailored opt-out, direct-to-patient medication adherence programs in the USA. It will give it an addressable network of 180 million+ patients, ~25,000 pharmacies (>57% of prescriptions in the USA), and a network of 618,000 prescribers (~60% of total).
It also expects it to accelerate the company's penetration in the US market by leveraging Adheris' existing pharmacy integrations. This reduces the need for MedAdvisor to individually integrate with the underlying US pharmacies and Electronic Health Records.
"Transformational"
MedAdvisor's CEO and Managing Director, Robert Read, believes the acquisition will be transformational for the company.
He said: "Medication non-adherence is a multi-billion-dollar global market with a lack of global players working to solve it. The US represents about 40% of the world's medicines market and Adheris has the potential to reach 1 in 2 Americans through its opt out patient programs."
"The opportunity to acquire a strategically aligned scale provider, in the US, with whom we have already integrated our technology and go to market approach, we believe is transformational for MedAdvisor. This acquisition primes MedAdvisor to become a genuine global player with scale in medication adherence, helping millions of patients around the world improve their health outcomes," he added.
