Business
Mednow Provides Business Strategy and Virtual Pharmacy Growth Update
Mednow Provides Business Strategy and Virtual Pharmacy Growth Update.
About this update from Mednow Inc.
[{"type":"text","content":"\nMednow Inc. (TSXV: MNOW) (OTCQX: MDNWF), Canada's leading on-demand virtual pharmacy, is excited to provide a comprehensive update on its business strategy and early growth in the virtual pharmacy sector. With a renewed focus on its core offerings of technology-enabled virtual pharmacy and virtual care experiences, Mednow is executing on its plan to modernize the $47 Billion pharmacy industry.(1) This update outlines the key areas of our strategic plan and showcases the early success of our disruptive virtual pharmacy experience.\n\n\nOperational highlights focus on increased growth in core virtual pharmacy and virtual pharmacy services, along with reduced costs\n\n\n\nVirtual Pharmacy Growth: Strong base developed in the “build phase” and now ready to pursue large partnership launches;\n\n\nAnnualized monthly revenue for virtual care pharmacy and Medvisit grew 720% from January 2021 to January 2023, from $500K to $4.1M on an annualized basis.\n\n\n\n\n\n\nUser growth has been strong with Mednow app registrations at 17K and pharmacy patients of 8K as of May 2023 (up approximately 700% from 1K pharmacy patients in January 2022);\n\n\n\nTotal quarterly overhead costs reduced 45% from fiscal Q4 2022 to fiscal Q2 2023 (excluding London Pharmacare Inc. and Liver Care Canada Inc.); and\n\n\n\nGross margin expansion roadmap includes a focus on higher margin: chronic conditions, virtual clinical services, non-prescription sales and regularly scheduled subscription drug sales, all coupled with high customer retention.\n\n\n\nThe pharmacy industry is ready for a change to digital pharmacy\n\n\n\nPharmacy is a large “offline” industry\n\n\n$47 billion dollar Canadian pharmacy market(1), has a relatively small penetration rate online today based on management estimates;\n\n\n\nCanada has a favorable competitive environment for virtual pharmacy; and\n\n\n\nThe U.S. already has large virtual pharmacy players (2)\n\n\n\n\n\n\n$4 billion in annual costs to the Canadian health care system from 5% of emergency room and physician visits due to drug non-adherence(3)\n\n\n\n20% of family doctors are anticipated to retire in the next 5 years in Toronto(4)\n\n\n\n6.5 million Canadians without a family doctor(5)\n\n\n\n28% of Canadians believe health care is in crisis compared to 10% one decade earlier(6)\n\n\n\n48% of Canadia...