Australian digital medication management company MedAdvisor (ASX: MDR) has secured a new cornerstone investor and preferred partner for its US business following an oversubscribed capital raising.
The company successfully raised $17 million through a placement of 340 million fullypaid ordinary shares to Australian and US institutional investors at $0.05 per new share.
It included an $11 million investment from NASDAQ-listed entity HMS Holdings Corp, which specialises in the provision of technology and analytics solutions to healthcare funders in the US.
The company is also the largest private partner of the Australian government’s Digital Health Co-operative Research Centre, based in New South Wales.
Proceeds from the capital raising will be used to drive MedAdvisor’s local and overseas business growth via investments in technology, sales and support.
Funds will also be used to support the company’s smartphone medication management joint venture with healthcare giant Zuellig Pharma Holdings, which addresses a market of over 560 million people in Asia.
Following the share placement, HMS will become MedAdvisor’s largest investor with a shareholding of approximately 13%.
MedAdvisor will also become HMS’ preferred partner for the distribution of MedAdvisor’s digital health programs in the US and Australia.
The programs are designed to drive the quality use of medications and promote health literacy and medication adherence among the patient population.
Through an ongoing partnership with Adheris in the US, MedAdvisor has been marketing its digital adherence programs to pharma companies wanting to reach out to more than 190 million US patients through a network of over 26,000 pharmacies.
New board member
Under the terms of HMS’ cornerstone investment, the company’s chief financial officer and treasurer Jeff Sherman has been appointed to the MedAdvisor board.
Mr Sherman has more than 30 years of experience in the healthcare industry, having previously served as executive vice president of AccentCare and LifePoint Hospitals Inc. He also held senior finance and risk management positions at Tenet Healthcare Corporation.
At midday, shares in MedAdvisor were up 17.78% to $0.053.