My partner works in the pharmacy industry and told me some interesting news about MedAdvisor that was reported in the AJP.

In their half year presentation it was announced that they would start charging for transactions for vaccinations and ProjectStop.

While pharmacies will have an option on how they manage vaccinations, ProjectStop is a mandated government initiative in a majority of states to prevent pseudo shoppers and was incorporated into MedAdvisor when they acquired GuildLink then rolled into the PlusOne platform.

https://www.guild.org.au/__data/assets/pdf_file/0011/5015/project-stop.pdf

If MedAdvisor start charging pharmacies per transaction in which they have no choice, they can likely expect some disgruntled customers and for me is a bit of an ethical grey zone.

Pharmacies may then also either stop using the program in the states where they don't need to, reducing the positive impacts it has had, or just stop selling pseudoephedrine-based products.

https://www.mymedadvisor.com/plusone/pricing

But also an example of pricing power in play.

December 2020 Quarterly Report and 4C

Key highlights

? Purchased Adheris, LLC creating immediate scale in the USA

? Full year CY20 pro-forma revenue of AUD$56m up 484% on CY19 (AUD:USD $0.70)

? MedAdvisor US (incorporating Adheris) achieved USD$19.3m pro-forma in sales for the December half-year (up 85% on the prior corresponding period (p.c.p) and +40% on the Company’s initial forecast of USD$13.8m pro-forma for the half-year)

? Signed contracts to deliver 50%+ of CY21 Adheris earnout revenue hurdle of USD$32.5m (~AUD$40m) and pipeline is strong

? Recognised revenue of AUD$12.8m for the half-year to 31 December 2020, up AUD$8.3m on the p.c.p. (+188%), and AUD$10.3m for the quarter, including the 6 weeks following the Adheris acquisition on 17 November 2020

? Vaccine product was the highest revenue product for CY20, indicating the significant opportunity for MedAdvisor in this space, as programs drive awareness and dose series completion, critical to ensure patients are adequately vaccinated

? Increased operating cash inflows to AUD$14.2m for the half-year to 31 December, up 196% on the p.c.p.

? MedAdvisor (excl. USA) total revenue of AUD$2.7m for the quarter, up 15.4% on p.c.p

? Raised AUD$42.2m equity from a number of existing shareholders, including HMS, and new institutional investors

? Funded to execute integration and growth plans with AUD$21.2m cash at bank

DISC~I have a small holding