Medadvisor Ltd (ASX: MDR) Share Price Creeps Higher On Deliveries Launch

On Monday 27 April, MedAdvisor Ltd (ASX: MDR) announced that its telehealth and pharmacy-to-home deliveries have gone live. Since then, the share price has crept some 10% higher. 

As we reported in March, the MedAdvisor app has previously allowed patients to remotely order a repeat prescription from their GP. Since the Covid-19 outbreak, however, this functionality has been expanded.

MedAdvisor app users can now speak with a GP over the internet, then file a prescription with a pharmacist and have the medication delivered straight to their home. The app also handily tracks users’ current medication regimens, and informs them when they need to restock.

“Medadvisor has fast-tracked its development roadmap to launch home delivery and telehealth services to assist patients, pharmacies and doctors through these challenging times,” said CEO Robert Read on Monday. “Our team has worked hand-in-hand with our network of pharmacies […] to provide the solutions our healthcare system needs immediately.”

The MedAdvisor app integrates with Kings Transport for delivery. The Kings app connects Australian businesses with a network of 1,300 subcontracted drivers.

According to MedAdvisor’s Monday announcement, 1,000 pharmacies have activated MedAdvisor’s delivery function. This is over 10% of the approximately 5,700 pharmacies nation-wide.

MedAdvisor’s greatest business challenge, however, may not be in gaining early uptake from pharmacies. Covid-19 is sparking a telehealth revolution, such that the industry may come to favour entirely online operations integrating medical consultations, pharmacy sales and deliveries. This will surely spawn many competitors.

Ironically, an app add-on to physical pharmacies may be too limited an ambition in the long-term. With an ageing population, an operating model like that of Prime Medic, which developed tele-health primarily for rural clientele and has a staff of doctors working entirely online appointments, may be a more powerful way of owning the customer.

But in any event, MedAdvisor looks likely to form an increasingly important part of Australia’s healthcare infrastructure.

Christian Tym does not own shares in MedAdvisor Ltd. The proprietor of this website, Claude Walker does own shares in MedAdvisor Ltd.

This post is not financial advice, and you should click here to read our detailed disclaimer.

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