Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down a further 8% to $10.49. This is the second day in a row that the fund manager's shares have fallen heavily. On Thursday, Magellan announced a number of executive and investment team changes. This includes the exit of Gerald Stack from his role as Head of Investments after 18 years with the firm. It notes that Stack has been Magellan's Head of Investments for more than a decade and over the past two years has contributed to important initiatives to strengthen the Investment Team. Magellan advised that Stack "now feels the business has the stability and direction it needs for the future and will take some time off before pursuing his next opportunity."

Medadvisor Ltd (ASX: MDR)

The Medadvisor share price is down almost 3% to 18 cents. This appears to have been driven by a broker note out of Bell Potter. Its analysts have downgraded this medtech company's shares to a hold rating (from buy) and slashed the price target on them to 21 cents (from 40 cents). This follows the release of a very disappointing quarterly update which fell well short of expectations.

Origin Energy Ltd (ASX: ORG)

The Origin Energy share price is down 4.5% to $10.70. Investors have been selling this energy company's shares following the release of its second quarter update. Although there were a lot of bright spots in the update, these were overshadowed by a downgrade to Australia Pacific LNG (APLNG) production guidance. Its FY 2025 production guidance for APLNG is now 670–690 petajoules (PJ). This is down 2% to 3% from its previous forecast of 685–710 PJ. This reflects lower-than-expected benefits from well optimisation efforts at Condabri, Talinga, and Orana, as well as reduced performance from non-operated assets and unplanned maintenance.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is down 17% to 81 cents. This has been driven by the release of the sports betting company's quarterly update. Pointsbet posted a quarterly total net win of $69.9 million, which was flat on the prior corresponding period. It also revealed that its normalised EBITDA was negative $3.3 million for the first half.

The post Why Magellan, Medadvisor, Origin Energy, and Pointsbet shares are tumbling today appeared first on The Motley Fool Australia.

That ASX healthcare stock is none other than Medadvisor Ltd (ASX: MDR). Sure, Medadvisor shares didn't have a spectacular start to the trading week on Monday, finishing the day flat at 50 cents a share.

But when you consider that those same shares started the 2024 calendar year at just 22 cents apiece, it's hard to feel sorry for owners of this ASX healthcare stock.

Yes, Medadvisor shares are up a whopping 127.27% over 2024 to date. This company is also up 108.33% over the past 12 months, and has gained 11.11% over the past month alone.

Check that all out for yourself below:

So how has this ASX healthcare stock pulled off such significant gains, especially over the past month alone?

How has this ASX healthcare stock risen 127% in 2024?

Well, excitement over Medadvisor shares arguably started building after the ASX healthcare stock released an impressive quarterly update back in April. As we briefly covered at the time, this saw Medadvisor post a 42.4% rise in operating revenues for the quarter ending 31 March 2024 to $24.2 million. That was up from $17 million over the same quarter of 2023.

Medadvisor's gross profits for the quarter increased by an even more impressive 48.5% to $15.3 million.

The positive sentiment following this quarterly update seemed to intensify over the following month. In May, Medadvisor followed up this quarterly update with some guidance for the full 2024 financial year. The company revealed that it is expecting to bring in $120-$123 million in revenues over FY24, which would be a huge improvement over the $98 million it saw over FY23.

The ASX healthcare stock is also anticipating to book its first-ever net profit after tax in FY24. It has told investors to expect a net profit of between $500,000 and $800,000 for the year, which again is a massive improvement over FY23's net loss of $11.3 million.

So now it's probably becoming clear why Medadvisor has become such a sought-after stock on the ASX in recent months.

EBOS buys up Medadvisor shares

But it's not just ordinary investors that seem keen on this ASX healthcare stock. An announcement earlier this month confirmed that another healthcare stock in EBOS Group Ltd (ASX: EBO) has been buying up shares in Medadvisor. The ASX filing revealed that EBOS has recently acquired just over 27.5 million shares of Medavisor, increasing its stake in the company to 9.8%.

Here's how EBOS explained its move:

EBOS initially acquired a 14.1% interest in MedAdvisor in October 2017, which has been diluted by subsequent share issuances.

EBOS regards its shareholding in MedAdvisor as an investment and does not intend to make a change of control proposal in respect of MedAdvisor.

So it seems that Medadvisor's recent financial statements are largely behind this ASX healthcare stock's remarkable ASX run in recent months. It probably doesn't hurt Medadvisor shares' fortunes that EBOS is buying up additional stock either. Let's see what FY25 has in store for this ASX high flyer.

The post Up 127% in 2024, why this ASX healthcare stock is surging again this month appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are storming higher:

Healthco Healthcare and Wellness REIT (ASX: HCW)

The Healthco Healthcare and Wellness REIT share price is up 5% to $1.18. This morning, this healthcare and wellness property company announced a $50 million on-market share buyback. Head of Real Estate, Sid Sharma, said: "The buy-back demonstrates our conviction in HCW's value proposition and long-term growth fundamentals. We believe the current unit price presents an attractive opportunity to gain exposure to a high-quality portfolio of critical healthcare infrastructure at a significant discount to NTA."

Medadvisor Ltd (ASX: MDR)

The Medadvisor share price is up 15% to 31 cents. This has been driven by the pharmacy-focused patient engagement solutions company's quarterly update. Medadvisor reported a 42.4% increase in operating revenue to $24.2 million. This has lifted its year to date revenue to $99.8 million. Management notes that this is more than it recorded in FY 2023 with one quarter still to come. Gross profit grew 48.5% during the quarter to $15.3 million, bringing its year to date gross profit to $58.7 million. This is up 20% over the prior corresponding period.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay Health Care share price is up 2.5% to $52.35. This appears to be due to media speculation that Wesfarmers Ltd (ASX: WES) could be running the rule over the private hospital operator. It would certainly be a sizeable purchase for Wesfarmers. Ramsay Health Care currently has a market capitalisation of approximately $12 billion. Neither company has responded to the media speculation.

Tamboran Resources Ltd (ASX: TBN)

The Tamboran Resources share price is up 3% to 17 cents. This morning, this natural gas company announced a binding long-term gas sales agreement. This will see Tamboran Resources supply the Northern Territory Government with 40 TJ per day from the proposed Shenandoah South Pilot Project for an initial term of nine years. Tamboran is targeting a final investment decision on the proposed project in mid-2024, with first production planned by the first half of 2026. The company's managing director and CEO, Joel Riddle, commented: "This is a transformational development for Tamboran and our partners, after ten years of hard work and more than A$500 million invested in Beetaloo exploration and appraisal activities."

The post Healthco Healthcare, Medadvisor, Ramsay Health Care, and Tamboran shares are rising appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are charging higher:

European Lithium Ltd (ASX: EUR)

The European Lithium share price is up 15% to 8.3 cents. Investors have been buying this lithium explorer's shares after it announced a binding offtake agreement with auto giant BMW. From 2026, European Lithium will supply BMW with a total of 50,000 metric tonnes of battery grade lithium hydroxide from the Wolfsberg Lithium Project in Austria.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 7% to $3.04. Evolution and other gold miners are charging higher today after the gold price rose strongly overnight. This has led to the S&P/ASX All Ordinaries Gold index rising an impressive 4.9% on Wednesday.

MedAdvisor Ltd (ASX: MDR)

The Medadvisor share price is up 11% to 25 cents. This morning, the medtech company released its revenue guidance for the first half of FY 2023. Medadvisor revealed that it expects to report half year revenue between $58 million and $61 million. This will be up 50% to 60% on the prior corresponding period.

REA Group Limited (ASX: REA)

The REA share price is up 3% to $112.39. This may have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has retained its conviction buy rating with a slightly trimmed price target of $158.00. Goldman commented: "Following the recent decline in share prices, REA/DHG are now trading on 19x/13x 12mf EBITDA, which we see as very attractive vs. historical levels (>20% discount)."

The post Why European Lithium, Evolution, MedAdvisor, and REA shares are charging higher appeared first on The Motley Fool Australia.

The S&P/ASX 200 Health Care index (ASX: XHJ) finished up 122 basis points today and has climbed over 1.6% in the past month of trade as well.

Within the basket, these three shares are standouts – but to the downside, not to the upside – after their FY22 results. Let's take a look.

Mayne Pharma Group Ltd (ASX: MYX)

Shares of Mayne Pharma finished the day more than 3% down after its FY22 earnings. Just the day prior, it had nudged past 52-week highs of 38.5 cents.

It now rests at 32 cents at the close on Friday.

In its results, the company reported a 6% gain in revenue. However, this wasn't reflected further down the income statement.

Instead, Mayne printed a net loss after tax of $263 million for the 12 months.

Investors were undoubtedly dissatisfied with the result and sold off shares en masse today, with total volume reaching almost 4.1 million shares.

Atomo Diagnostics Ltd (ASX: AT1)

Shares in Atomo also slipped further into the red today and finished 2% lower at 7.1 cents apiece.

In its report, the company printed an 83.7% year-on-year gain in revenue to $12.34 billion. However, the loss operations worsened by 5% to $5.7 million.

It also left the year with $13 million in cash and no bank debt, putting it in the position to "vigorously pursue its strategic goals in FY23".

Despite the optimism, investors weren't on board with the company today and sold down shares at a volume of more than 158% of the 4-week average.

This brings losses to 76% for the year to date for the company.

MedAdvisor Ltd (ASX: MDR)

Shares in MedAdvisor also finished the day almost 7% down at 14 cents apiece following the release of its FY22 results.

In its report, the company saw operating revenue climb by 75% year on year to $67 million, leading gross margin to climb by 17% to $35 million.

However, in tandem with the other two ASX healthcare shares mentioned above, MedAdvisor saw its loss after tax increase to $17.5 million, worse than last year's result.

Unsurprisingly, therefore, investors punished the share today and drove it back in line with its 52-week closing lows.

It seems that investors were searching for profitability within the ASX healthcare space this earnings season. Those names who failed to demonstrate it or at least a reasonable path to achieving profit are being punished.

The post 3 ASX healthcare shares punished following full-year results appeared first on The Motley Fool Australia.

The medication management platform provider's shares are currently up 12% to 32.5 cents.

Why did the MedAdvisor share price push higher?

MedAdvisor has provided a business update 6 months after its acquisition of US-based patient management solutions platform, Adheris.

In today's statement, MedAdvisor advised that its revenue had growth 40% on a like-for-like basis for the 9 months year-to-date for FY21.

MedAdvisor is leveraging Adheris' extensive network of approximately 25,000 pharmacies and 2.2 billion scripts annual to bring additional scale to its digital capabilities.

The rollout of MedAdvisor's digital solutions through the Adheris network is well underway. In June, 17% of the Adheris pharmacy network was scheduled to be digital, and a further 13% is expected in the September quarter.

Pleasingly, this will bring the company's profile of digitally contactable patients in the US to approximately 42 million, or 20 times its present digital reach in Australia.

Additionally, MedAdvisor has rolled out 7 digital programs for pharmaceutical companies in the US. The company says that on average, patients who join the digital program demonstrate an improved adherence of up to 30%, leading to 1–2 extra script fills per year. The company says this results in improved health outcomes for the patients and more consistent revenue for the pharmacy.

Management commentary

MedAdvisor US President, John Ciccio comments on the company's achievements in the US:

We've invested in providing the sales and marketing team with the resources required to go deeper with existing clients and expand our customer base. We've added new customers and brands to our network in the past 6 months and we're selling more multi-tactic programs that include digital.

By expanding its digital offering, MedAdvisor is able to significantly boost the attractiveness of its product suite to its client base. As an example, one top ten pharmaceutical client who has averaged USD$125k p.a. with Adheris over the last 2 years has now signed a multi-channel deal for USD$1 million for CY21.

The post Why the MedAdvisor (ASX:MDR) share price jumped 12% today appeared first on The Motley Fool Australia.

In early afternoon trade, the medication management platform provider's shares are swapping hands for 33.5 cents, up 3.8% after reaching an intraday high of 35 cents.

Let's take a closer look at what's driving the MedAdvisor share price higher today.

Health program extension

In its release, MedAdvisor advised that a global pharmaceutical company has extended its United States health program deal for an estimated additional 3 months. The contract extension is expected to generate US$4.7 million in revenue for MedAdvisor.

This follows a previously signed agreement that saw MedAdvisor provide its platform to the pharmaceutical company over a 5-month period. That deal alone was worth US$3.7 million.

Although MedAdvisor did not specify which company was behind the contract extension, it is believed to be from a top 10 global pharmaceutical company.

Words from management

MedAdvisor CEO and managing director Robert Read hailed the company's success, saying:

We're delighted to have another health program extended in the US market. These health programs deliver tailored content specifically to the right patients based on advanced algorithms and are designed to ensure they are aware of the benefits of certain medications or vaccines.

MedAdvisor continues to expand its global deal pipeline as it establishes scalable revenue streams both domestically and abroad. Our US pipeline of 2021 deals is ahead of this time last year.

MedAdvisor share price snapshot

The MedAdvisor share price hasn't moved much over the last 12 months, rising a modest 6%. Its year-to-date performance, however, is marginally down around 2%.

MedAdvisor shares reached a multi-year high of 66.5 cents in late May 2020 before treading lower.

Based on valuation grounds, the company commands a market capitalisation of more than $124 million, with 359.4 million shares outstanding.

The post The MedAdvisor (ASX:MDR) share price is lifting today. Here's why appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are storming higher:

Brickworks Limited (ASX: BKW)

The Brickworks share price has climbed 4% to $19.67. Investors have been buying the building products company's shares following the release of its half year results. Although its underlying earnings were down 10% on the prior corresponding period to $90 million, management spoke positively about its outlook. This appears to be an indication that the worst is now behind Brickworks.

McPherson's Ltd (ASX: MCP)

The McPherson's share price has jumped 13% to $1.38. This follows news that McPherson's has received a takeover approach from Gallin Pty Ltd at $1.34 cash per share. Gallin has been incorporated specifically for the purpose of acquiring an interest in McPherson's. It is owned by Kin Group, which is controlled by the Geminder family. Kin Group attacked McPherson's management for destroying shareholder wealth. The McPherson's board responded by saying that the offer is "utterly opportunistic and profoundly undervalues" the company.

Medadvisor Ltd (ASX: MDR)

The MedAdvisor share price is up 3% to 33.5 cents. Investors have been buying the medication management company's shares following the release of a positive announcement. MedAdvisor has revealed that a global pharmaceutical company has extended its health program deal for an estimated 3 months. This is expected to be worth US$4.7 million.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price has stormed over 4% higher to $24.88. The catalyst for this was the release of a broker note out of Macquarie this morning. According to the note, the broker has retained its outperform rating and lifted its price target to $31.00. Macquarie was impressed with the retail conglomerate's first half result.

The post Why Brickworks, McPherson's, MedAdvisor, & Premier Investments are storming higher appeared first on The Motley Fool Australia.

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.

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

At the time of writing, the medication management platform provider's shares are up 2.5% to 40 cents.

Why is the MedAdvisor share price pushing higher?

Investors have been buying the company's shares this morning after the release of a trading update.

According to the release, MedAdvisor's US subsidiary, Adheris, has been performing better than it anticipated since being acquired on 17 November.

In light of this, the company is expecting Adheris' revenue to be higher than the guidance it previously provided.

For the period 1 July to the end of November, Adheris achieved revenue of US$14 million. This compares to half year revenue guidance of US$13.8 million.

This appears to have been driven partly by the signing of a one-year deal with a major US biopharmaceutical company at the end of last month. The unnamed US$70 billion biotech giant is leveraging its data and analytics platform to target patient awareness and adherence across the Adheris network.

FY 2021 guidance upgrade.

Pleasingly, management expects this outperformance to continue in the second half and has lifted its full year Adheris guidance.

For the 12 months, the company was forecasting Adheris to deliver revenue of US$26.4 million. It now expects this to be 7.5% higher at US$28.4 million. Management advised that this represents 12.2% growth year on year.

MedAdvisor's CEO and Managing Director, Robert Read, commented: "We're pleased to confirm that trading for the half-to-date for our newly-acquired Adheris subsidiary has exceeded $14m USD with one month of trading to go."

"Our investment thesis and diligence had sought to confirm that the Adheris business was delivering growth which could be accelerated with MedAdvisor's technology across the substantial scale the business had built over the last 25 years. We are pleased to see the core business improve its growth trajectory and look forward to investing in growth initiatives that will accelerate this even further," he concluded.

The post Why the MedAdvisor (ASX:MDR) share price is pushing higher today appeared first on The Motley Fool Australia.

Today, I thought I would take a look at the healthcare sector again, but this time at the small end of town.

Two small cap healthcare shares that have been growing quickly are listed below. Here's what you need to know about them:

Avita Medical Ltd (ASX: AVH)

Avita Medical is a global regenerative medicine company best known for its Recell system. This is a spray-on skin treatment used for burns victims. Demand for its offering has been growing very strongly over the last couple of years. Pleasingly, this has continued in FY 2021. During the first quarter, Avita reported a 59% increase in U.S based RECELL revenue to US$5 million. This strong revenue growth was driven by a 27.2% increase in procedural volumes to 496 and the addition of 9 new accounts in the first quarter. The latter brings its total accounts to 86.

Avita isn't resting on its laurels and is busy seeking to expand the use of the Recell system. It is hoping to be able to treat vitiligo with the system in the future. In addition, the company recently announced a collaboration with Houston Methodist Research Institute that will see the pairing of Avita's proprietary Spray-On Skin Cells with Houston Methodist Research Institute's expertise in reversing cellular ageing. The project is seeking to establish proof-of-concept for the development of a novel approach to reverse ageing and rejuvenate skin.

MedAdvisor Ltd (ASX: MDR)

MedAdvisor is a growing medication management platform provider. Its main focus is on addressing gaps in personal medication adherence. It provides software that connects to pharmacy dispensing systems to automatically retrieve medication records. It also comes with an intelligent training, information, and reminder system to ensure correct and reliable medication use. During the first quarter, MedAdvisor reported a 53% increase in cash receipts to $3.5 million.

The company also recently announced the acquisition of US-based Adheris for US$34.5 million (A$49 million). This acquisition will see MedAdvisor become a leader in tailored opt-out, direct-to-patient medication adherence programs in the USA. It will have 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).

The post 2 ASX small cap healthcare shares growing quickly appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 4% to $97.35. Investors have been selling the payments company's shares despite the release of a positive update at its annual general meeting. That update revealed that October was another record month for underlying sales globally. Furthermore, it advised that month to date the company is tracking ahead of this and new customer growth has been accelerating since the end of Q1 in both the US and UK. An ASIC report into the BNPL industry may be overshadowing this news.

Goodman Group (ASX: GMG)

The Goodman share price is down over 4% to $18.65. This morning analysts at Goldman Sachs reiterated their sell rating and lowly $12.24 price target on the property company's shares. While Goldman is expecting solid growth in the coming years, it still believes its shares are overvalued.

MedAdvisor Ltd (ASX: MDR)

The MedAdvisor share price has tumbled 8% to 39 cents. Earlier today the medication management platform provider announced the opening of its retail entitlement offer. That offer will see eligible shareholders able to subscribe for 1 new share for every 2.5 shares they own for an issue price of 38 cents per new share. The maximum raised under the offer will be just a touch under $18 million.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price has fallen 2.5% to $11.23. This is despite the sports betting company providing an update on its US operations. According to the release, the company has now launched in the State of Colorado and taken its first bet. Management is now focusing on its next launch, which is planned for Michigan in the third quarter of FY 2021. Michigan will also see the inaugural launch of PointsBet's iGaming product.

The post Why Afterpay, Goodman, MedAdvisor, & PointsBet shares are dropping lower appeared first on The Motley Fool Australia.

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."

The post Why the MedAdvisor (ASX:MDR) share price jumped 9% on Friday appeared first on The Motley Fool Australia.

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.

The post MedAdvisor Ltd (ASX:MDR) share price halted ahead of transformational $49 million acquisition appeared first on The Motley Fool Australia.

In this sector there are a number of companies that are benefiting from favourable tailwinds and have the potential to grow materially in the future.

Three small cap ASX healthcare shares to watch are listed below:

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a medical imaging data management solutions provider which uses software to create a clear and complete view of the patient. The company's software helps to inform diagnosis, reduce care delivery delays and costs, and, importantly, improve patient outcomes. It recently expanded its offering via the acquisition of enterprise image viewing technology company Client Outlook. Combined, Mach7 now has a total addressable market of US$2.75 billion.

Medadvisor Ltd (ASX: MDR)

Medadvisor is a software systems developer with a focus on personal medication adherence. It offers an app that connects to pharmacy dispensing systems and has been designed to ensure correct and reliable medication use. In Australia it has connected over one million users through nearly 60% of Australian pharmacies and a network of thousands of GPs. Outside Australia, the company has growing operations in the United States, Asia, and UK markets.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. At the last count, its market share in the United States had grown to 27% of women screened for breast cancer. The company also advised that the annual revenue per user (ARPU) within its US breast cancer operations stood at approximately NZ$1.70 (US$1.09). However, thanks to the expansion of its product suite, during the second quarter the company has been seeing quotes with ARPU rising up to US$8.00. This is a huge step forward and validates management's belief that its whole software platform will command ARPU of US$10.00.

The post 3 small cap ASX healthcare shares to watch closely in the 2020s appeared first on The Motley Fool Australia.

Pro Medicus Limited (ASX: PME)

Pro Medicus provides imaging software to hospitals, diagnostic imaging groups and healthcare entities. The company currently operates across Australia, Europe and the United States. Its solutions provide medical accounting, clinical reporting, appointment scheduling, and management information applications. The Pro Medicus share price has largely recovered from the March market correction and is trading at $26.57. This is back on par with levels seen in early 2020. Pro Medicus recently signed a $22 million deal with Chicago-based Northwestern Memorial HealthCare which will implement its Visage 7 technology.

MedAdvisor Ltd (ASX: MDR)

MedAdvisor is behind an innovative software that puts a virtual pharmacist on customer smartphones, tablets, and PCs. The software reminds users when to take medications, fill recurring scripts, and even manage the medication of other family members. It connects with local pharmacies, allowing customers to order prescriptions from their phones for collection. The MedAdvisor share price is up 86% from its March low, currently trading at 54 cents. This week MedAdvisor announced a strategic alliance with NASDAQ-listed HMS Holdings Corp  (NASDAQ: HMSY) under which MedAdvisor will integrate with HMS' health engagement platform. This will enable healthcare organisations to proactively communicate with patients, with MedAdvisor to generate revenue from each digital message sent on behalf of HMS' clients.  

Respiri Ltd (ASX: RSH)

Respiri produces medical devices designed to monitor asthma symptoms for use in hospitals and at home. A respiratory eHealth software-as-a-service (SaaS) company, Respiri is seeking to improve the management of asthma, which impacts some 340 million people worldwide. The Respiri share price has increased by 60% to 9 cents a share from a low of 6 cents in May. Last week Respiri announced an agreement with the University of Edinburgh to partner on a new data research centre. The centre will use data collected using Respiri devices to develop innovations in the delivery of care for people with asthma, chronic obstructive pulmonary disease, and respiratory infections. The ASX medical technology company plans to enter the European market in 2021 following its Australian commercial launch in the fourth quarter of the calendar year 2020.

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While I believe both companies still have a lot of growth left in them, the law of large numbers would indicate that the impressive growth rates they have achieved over the last decade or two will be hard to replicate in the future.

So, if you're looking for outsized returns in the healthcare sector, you might want to look at a few up and coming healthcare companies that could be stars of the future.

Three small cap healthcare shares that I think are worth watching closely are listed below:

Mach7 Technologies Ltd (ASX: M7T)

The first small cap healthcare share to look at is Mach7. It is a medical imaging data management solutions provider which uses software to create a clear and complete view of the patient. This helps inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. The company has also just expanded its offering with the acquisition of Client Outlook. It is a leading provider of an enterprise image viewing technology and increases Mach7's total addressable market from US$0.75 billion to US$2.75 billion. This is significantly more than the revenue of $9.1 million it recorded during the first half. 

Medadvisor Ltd (ASX: MDR)

A second small cap healthcare share to watch is this healthcare technology company. Medadvisor has a focus on personal medication adherence and offers an app that connects to pharmacy dispensing systems. It has been designed to ensure correct and reliable medication use. In Australia it has connected over one million users through nearly 60% of Australian pharmacies and a network of thousands of GPs. In addition to this, the company is operating in the United States, Asia, and UK markets.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap ASX healthcare share to watch is Volpara Health Technologies. It is a growing technology company that offers cost-effective, mission-critical software that help radiologists deliver the highest-quality breast imaging services. Volpara's software also uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. Management estimates that it currently has a US$750 million annual recurring revenue (ARR) opportunity in breast cancer screening. This compares to the ARR of NZ$18 million it recorded in FY 2020.

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Three small cap shares which I feel would be worth keeping a close eye on are listed below. Here's why I like them:

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX share to watch is Alcidion. It is a healthcare informatics solutions company which provides software that improves the efficacy and cost of delivering services to patients. Its software also helps to reduce hospital-acquired complications, which can ultimately save lives. I believe Alcidion is well-positioned for growth thanks to the trend for healthcare organisations to shift to a paperless environment. And while the pandemic could stifle its near term growth, I remain confident in its long term outlook.

Medadvisor Ltd (ASX: MDR)

A second small cap ASX share to watch is Medadvisor. It is a healthcare technology company which is focused on personal medication adherence. Medadvisor's app connects to pharmacy dispensing systems to automatically retrieve medication records and drive an intelligent training, information, and reminder system. This has been designed to ensure correct and reliable medication use. Another product which I feel has a lot of potential is its telehealth solution. This allows patients to attend GP consultations from the comfort of their own home.

Serko Ltd (ASX: SKO)

A final small cap share to watch is Serko. It is a technology company focused on corporate travel and expense management. It was growing at a very strong rate prior to the pandemic. This was driven partly by the increasing demand for its Zeno product. Zeno revolutionises the world of online travel booking technology and expense management. Demand for its services will inevitably be impacted by the current crisis, but I expect it to bounce back strongly once conditions ease.

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Three small cap healthcare shares to add to your watchlist right now are listed below. Here's why I think they are worth watching:

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX healthcare share to watch is Alcidion. It is a health informatics company aiming to transform healthcare with smart, intuitive technology solutions. The company has a growing portfolio of software products and services that support interoperability, allow communication and task management, and deliver clinical decision support at the point of care to improve patient outcomes. At present its software is in 215 hospitals, 42 healthcare organisations, and on 30,000 beds. I expect this to increase strongly in the coming years and drive strong sales growth.

Medadvisor Ltd (ASX: MDR)

Another ASX healthcare share to watch is Medadvisor. It is a growing software systems developer with a focus on addressing gaps in personal medication adherence. The company provides software that connects to pharmacy dispensing systems to automatically retrieve medication records. It also comes with an intelligent training, information, and reminder system to ensure correct and reliable medication use. In addition to this, the company is rolling out a medicine delivery service and a telehealth solution. The latter looks set to benefit from the rapid adoption of telehealth technology following the pandemic.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX healthcare share which I believe has significant potential is Volpara. Its software leverages artificial intelligence imaging algorithms to assist with the early detection of breast cancer. It has been growing its market share in North America at an exceptionally strong rate. This led to the company recently reporting a 172% increase in annual recurring revenue (ARR) to NZ$18 million. The good news is that this is still only scratching at the surface of an estimated US$750 million ARR opportunity in breast cancer screening.

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I think here you'll find a number of companies that have the potential to grow significantly in the future thanks to favourable tailwinds and new technologies.

Three small cap healthcare shares I am watching closely are listed below. Here's why I like them:

Medadvisor Ltd (ASX: MDR)

The first small cap healthcare share to watch is Medadvisor. It is a growing software systems developer which is addressing gaps in personal medication adherence. The company's app connects to pharmacy dispensing systems to automatically retrieve medication records and drive an intelligent training, information, and reminder system to ensure correct and reliable medication use. In addition, Medadvisor is also rolling out a medicine delivery service and a telehealth solution.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals or molecularly-targeted radiation. It is developing a portfolio of clinical-stage oncology products that address significant unmet medical need in renal, prostate, and brain cancer. I believe the company has a lot of potential and could prove to be a great long term investment.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is healthcare technology company. It provides software that uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. It has been a very strong performer in recent years due to the growing popularity of its software with radiologists. And thanks to the quality of the software, recent acquisitions, and its growing North American footprint, I expect the company to deliver further strong growth in FY 2021 and for many years to come.

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