MedAdvisor (ASX:MDR) to raise $45M to purchase Adheris

• MedAdvisor (MDR) is looking to raise $45 million through a capital raise to purchase Adheris for US$34.5 million (around A$49 million)
• The company’s U.S. subsidiary, MedAdvisor Welam, has entered into a binding agreement to buy Adheris from Syneos Health
• The company’s technology will integrate to create programs that can positively influence patient behaviour from point of initial prescribing to the pharmacy and when at home
• To pay for the purchase, MedAdvisor is aiming to raise $45 million through a placement and a non- renounceable entitlement offer
• The company entered two trading halts and shares will be paused until Friday, November 6, or when it completes the entitlement offer
• MedAdvisor last traded for 40 cents per share on October 30

MedAdvisor (MDR) is looking to raise $45 million through a capital raise to purchase Adheris.

The company’s U.S. subsidiary, MedAdvisor Welam, has entered into a binding agreement to buy Adheris for US$34.5 million (approximately A$49 million) from Syneos Health.

Adheris is an inVentiv Health company and a leading provider of patient performance programs.

MedAdvisor’s digital technology will complement Adheris’ and will allow it to offer integrated adherence and opt-out patient programs, which will be powered by advanced data and analytics.

These programs can positively influence patient behaviour from point of initial prescribing to the pharmacy and when at home.

The purchase will accelerate MedAdvisor’s U.S. presence by using Adheris’ existing pharmacy integrations, reducing the need for MedAdvisor to partner with U.S. pharmacies.

MedAdvisor has paid Syneos Health a deposit of US$1.375 million (around A$2 million).

CEO and Managing Director, Robert Read, said medication non-adherence is a multi-billion dollar market with not many global players working to solve its problems.

“The U.S. represents about 40 per cent of the world’s medicines market and Adheris has the potential to reach one in two Americans through its opt-out patient programs. The opportunity to acquire a strategically aligned scale provider, in the U.S., with whom we have already integrated our technology and go to market approach, we believe is transformational for MedAdvisor,” he said.

“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.

Capital raise

To pay for the purchase, MedAdvisor is aiming to raise $45 million through a placement and a non-renounceable entitlement offer.

Under the entitlement offer, eligible shareholders will be able to raise one new fully paid ordinary share in MedAdvisor for every 2.5 existing MedAdvisor shares. All shares will be issued at 45 cents each.

Additionally, Syneos Health has agreed to take US$5 million (around A$7.1 million) of the upfront consideration in the form of convertible notes.

The company entered two trading halts and shares will be paused until Friday, November 6, or when it completes the entitlement offer.

MedAdvisor last traded for 40 cents per share on October 30.