Adheris Health Limited · ASX:AHE
Adheris Health — Non-Deal Roadshow (October 2021)
43 slides from Adheris Health's roadshow presentation, Oct 13, 2021
Slide 1: Market Release: US Roadshow Presentation
MedAdvisor Limited ACN 145 327 617 Level 2, 971 Burke Road Camberwell Vic 3124 mymedadvisor.com/investors MARKET RELEASE US Roadshow Presentation Melbourne, Australia, 13 October, 2021 - Medtech company, MedAdvisor Limited (MedAdvisor) (ASX: MDR) advises that it is commencing a US non-deal investor
Slide 2: US Investor Roadshow
US Investor Roadshow A global leader in mymedadvisor.com digital medication adherence solutions October 2021 MedAdvisor Limited ABN 17 145 327 617
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This Presentation is dated [12]October 2021 and has been prepared by MedAdvisor Limited ABN 17 145 327 617 (MedAdvisor or the Company) for information purposes only. By receiving this Presentation, you are agreeing to the following restrictions and limitations. This p
Slide 4: Agenda
Agenda 01 MedAdvisor at a Glance 04 Global Markets – US & UK 02 Why Medication Adherence 05 Financial Opportunity 03 Global Markets - Australia 06 MDR Outlook Robert Read Simon Glover Managing Director & CEO Group CFO
Slide 5: We are a purpose driven health tech company
MedAdvisor Overview We are a purpose driven health tech company Improving healthcare outcomes by giving people back control of their medications through simplicity, convenience and education Co-founder Josh Swinnerton with his mom, Viv, the reason he started a quest to make medication more manageabl
Slide 6: Our strategic priorities
MedAdvisor Overview Our strategic priorities MedAdvisor is directly addressing the global problem of medication non-adherence which is a US$630b p.a. (1) problem, costing 125,000 lives in the US every year (2) Leveraging unique medication data and insights, with access to patients and the ability to
Slide 7: Global Expansion
MedAdvisor Overview Global Expansion Founded and developed in Australia and focusing on growing in the US and UK Corporate Overview(1) 195 $29.1m Employees globally FY21 Operating Revenue (2) 2.0m+ Digitally Connected 27% Patients in Au Like-for-Like Growth(2) 180m 55% Patients accessible in USA Gro
Slide 8: Why Medication Adherence
MedAdvisor Overview 01 / Why Medication Adherence “Even though I’m only 31, I’m on a lot of medications and this app makes my life so much simpler. Knowing exactly when you’ll run out so you can plan in advance. Getting messages straight away from the pharmacist if there’s a problem.” - Lucinda
Slide 9: Medication non-adherence is a problem worth solving
MedAdvisor Overview Medication non-adherence is a problem worth solving Results in 125,000 p.a. in the US and $630B globallyof unnecessary costs 50% of the population has a chronic disease1 12 million 160 million 55% are no longer taking medication after 6 5.4 million 72 million months2 Estimated li
Slide 10: Non-adherence means not taking your medication as prescribed
MedAdvisor Overview Non-adherence means not taking your medication as prescribed There are two key drivers of non-adherence1 : 01 / Unintentional 02 / Intentional I intend to do what the Doctor told me, but: I choose not to follow the regime because: • I forgot to take the medication dose • Unwanted
Slide 11: The value of MedAdvisor across the health system
MedAdvisor Overview The value of MedAdvisor across the health system Key stakeholder benefits Pharmacies Providers • Increases customer loyalty • Timely information for patient • Increased spend in pharmacy • Post visit care coordination from more adherent patients • Better outcomes • Improved workf
Slide 12: Australian Market Overview
MedAdvisor Overview 02 / Australian Market Overview “I just hit the refill button & I am notified when it’s ready. Now my GP is doing eScripts, I can attend a telehealth appointment, upload my script and order my drugs, all without getting out bed. So convenient…” - Hans (Australia)
Slide 13: Size of the Australian Market
MedAdvisor Overview Size of the Australian Market Strong pharmacy presence and growing patient reach Market Size Existing Reach Life Science Customers 25+ Companies spending <1% of their 5,750 3,700+ Advertising & Promotion Budget Pharmacies Pharmacies 12m+ Chronic 2.0m+ Patients Patients Beyond the
Slide 14: MedAdvisor is solving the non-adherence problem
MedAdvisor Overview MedAdvisor is solving the non-adherence problem Medication data powers solutions to help patients directly and assisting the pharmacy provide more effective services Our Patient Platform Our Pharmacy Platform ✓ App, SMS & Web Health Services ✓ Track, manage & order Marketplace me
Slide 15: MedAdvisor's solutions improve adherence by 20%+
MedAdvisor Overview MedAdvisor’s solutions improve adherence by 20%+ Our Solutions MedAdvisor impacts adherence by 20%+ Prompted interventions by pharmacists at point of dispense Education messages from life science companies straight to the pockets of patients MedAdvisor Plus Program 14
Slide 16: Australian product evolution is driven by investments in R&D in FY21
MedAdvisor Overview Australian product evolution is driven by investments in R&D in FY21 Continuous innovation and new product updates through a strong team of 40+ of engineers • App rebuild. Allowing simplified code base and faster and more responsive Free to patient design. Improved accessibility
Slide 17: MedAdvisor is free for patients, revenue generated from pharmacies and life science companies
MedAdvisor Overview MedAdvisor is free for patients, revenue generated from pharmacies and life science companies of Revenue from Pharmacy of Revenue from life science companies 88% Each patient on MedAdvisor adds on average 12% Life science companies want to improve patient outcomes approximately $
Slide 18: Australian Strategic Priorities
MedAdvisor Overview Australian Strategic Priorities Grow and commercialize the significant network that has already been built Initiative Impact 5-year outlook • Drive medication • 5m+ Patients • Grow patient numbers adherence programs and commercialisation • Pharmacy churn <4% pa., • Increase sales
Slide 19: US Overview
03 / US Overview “MedAdvisor has helped me get my HbA1c down from 9.7 to 6.1 by reminding me to take my insulin on time and check my blood glucose level during my busy day. It is so easy to use. This app has extended my life.” - Paul (Australia)
Slide 20: US is the largest market with a significant profit pool
MedAdvisor Overview US is the largest market with a significant profit pool Revenue Source Estimated Market Size Why & How • Life Science companies estimated to be spending USD $1.9b(1) to lift adherence • Grow core offering and new digital patient solutions Patient Programs • Payers are willing to
Slide 21: Recap on why we bought Adheris
MedAdvisor Overview Recap on why we bought Adheris • The Opportunity: at the time of the acquisition, Adheris had the largest patient reach in the US adherence market but revenue was declining Highlights due to under investment and a lack of digital capability. We saw an opportunity to introduce our
Slide 22: US Strategy: digitalize the Adheris network and improve patient engagement and outcomes
MedAdvisor Overview US Strategy: digitalize the Adheris network and improve patient engagement and outcomes Start with monetizing via health programs and DTC advertising, then rolling out SaaS solutions Strategy Priorities 2022 Status • Grow % of Adheris network digitally enabled ✓ 30% of Adheris ne
Slide 23: MedAdvisor's US model utilizes the pharmacy network to reach patients
MedAdvisor Overview MedAdvisor’s US model utilizes the pharmacy network to reach patients Adheris allows life science companies to leverage the pharmacist to educate patients in store or in home of Revenue from Pharmacy of Revenue from life science companies <5% Pharmacies may pay for various patien
Slide 24: Phase 1 was to successfully extract Adheris and return to growth before digitalizing network
MedAdvisor Overview Phase 1 was to successfully extract Adheris and return to growth before digitalizing network as phase 2 Delivered 35% like-for-like revenue growth from core business. Positive customer reaction to innovation agenda Phase 1: First 6 months Phase 2: 12+ months Add sales and marketi
Slide 25: Digitalisation of the network is ahead of our initial plans
MedAdvisor Overview Digitalisation of the network is ahead of our initial plans Expected to achieve 40m+ patients via digital by December 2021 accessible for health programs Now Dec 31 2021 Pipeline Stage Stores Est. Digital Patient Reach Stores Est. Digital Patient Reach Full Adheris Network 25,000
Slide 26: Reversed revenue decline returned Adheris to growth in FY21 and beyond
MedAdvisor Overview Reversed revenue decline returned Adheris to growth in FY21 and beyond Adheris turnaround to date due to health programs growth from investment in sales, marketing and product Revenue ($M USD) 1 History $M USD • Underinvestment in business impacted trajectory of the Adheris busin
Slide 27: UK Overview
05 / UK Overview “Before I downloaded the app, I was always losing my scripts. I would place my scripts in a special spot and then I would forget where that special spot was. Now I can hit re-fill and my carer can pick up the scripts for me.” - Gail (Australia)
Slide 28: MedAdvisor expanding into the UK
MedAdvisor Overview MedAdvisor expanding into the UK Founded in Australia and expanding to UK, similar market dynamics but 3x the Australian market UK Expansion Strategy SaaS led, building network, then health programs ~14,000 (1) • MedAdvisor’s leading SaaS solution to a market 3x Au, with attracti
Slide 29: Financial Opportunity
06 / Financial Opportunity “I have multiple prescriptions which are difficult to manage. MedAdvisor allows me to order all the outstanding items from home at any time...and communicate with the pharmacist for access to diabetes items like needles and strips. It makes it much easier for both myself a
Slide 30: Proposition: a business with multiple customers & revenue streams
MedAdvisor Overview MedAdvisor: a business with multiple customers & revenue streams(1) Customer Pharmacy Patients Life Sciences Companies • Patient management solution • Convenience “track, manage, order, • Ability to generate patient insights on • Medication management platform & pay & deliver you
Slide 31: Overall operating revenue growth of 26.7%, in FY21
MedAdvisor Overview Overall operating revenue growth of 26.7%, in FY21 Adheris turnaround due to health program growth and investment in sales Reported Operating Revenue ($M AUD) 1, 2 Like-for-Like Operating Revenue ($M AUD) 3,4 $M AUD $M AUD 50 50 45 +303.9% 45 43.1 +26.7% -18.0% 40 38.8 40 38.8 37
Slide 32: MedAdvisor Australian business had modest revenue growth
MedAdvisor Overview MedAdvisor Australian business had modest revenue growth Foundations in pace for strong FY22 performance MedAdvisor Australia Operating Revenue FY18 to FY21 (AUD $M) • Foundations for future revenue growth: +6.5% $m +11.9% +24.8% 9.8 1. New EGM Sales & Marketing enhancing 9.2 8.2
Slide 33: Blended gross margin of 55% across Au & US
MedAdvisor Overview Blended gross margin of 55% across Au & US Gross margin expansion a priority for FY22 MedAdvisor Australia gross LFL MedAdvisor US gross LFL MedAdvisor total gross margin % margin % margin % 87.8 87.0 83.8 59.2 61.3 54.9 51.1 50.1 46.1 80.8 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20
Slide 34: Medadvisor operating costs of $36.2m adjusted for acquisition
MedAdvisor Overview Medadvisor operating costs of $36.2m adjusted for acquisition YoY increase of 12.5% in underlying opex Reported and like-for-like operating costs Comments: $M AUD • Operating costs on an underlying basis up 12.5% 45 +12.5% +23.0% year-on-year 40 39.6 • Reported operating costs in
Slide 35: FY21 EBITDA group loss of $12.6m before non-recurring costs
MedAdvisor Overview FY21 EBITDA group loss of $12.6m1 before non-recurring costs Identified opex efficiencies improvements and synergies for FY22 Reconciliation of EBITDA FY20 FY21 ($M AUD) Comments: • EBITDA adjusted for lease payments -1.2 -3.2 results in a loss of $12.6m • Gross margin uplift of
Slide 36: Leveraging our global reach to drive attractive commercial outcomes
MedAdvisor Overview Leveraging our global reach to drive attractive commercial outcomes Today 5 years How we will get there • Revenue per program, per adherence patient up 100% - via. Dynamic Engagement 192m 200m+ • Patients that are digitally addressable increase from <5%% to 70% of the US Network
Slide 37: Executive Team and Board of Directors
MedAdvisor Overview Over 70+ years of combined healthcare and technology experience Executive Team Robert Read John Ciccio Simon Glover Wayne Marinoff Ruba El Afifi Jamal Butt CEO & Managing Director CEO USA CFO EGM Sales & Marketing Chief Operating Officer CEO UK AU & UK Board of Directors Chris Ri
Slide 38: Appendix
@ MedAdvisor Appendix mymedadvisor.com
Slide 39: Australian Digital Patient Adoption, more patients, more active
MedAdvisor Overview Australian Digital Patient Adoption, more patients, more active 2 CYTD Orders 2021 vs 2020 1.8 +56% 1.6 Australian 1.4 Patients 1.2 MedAdvisor 1 0.8 app patient 0.6 0.4 demographics 0.2 0 2015 2016 2017 2018 2019 2020 2021 31/07/2020 31/07/2021 25% 20.0% Monthly $ value of in-App
Slide 40: The combined effect of adherence and persistence improvements leads to significantly better outcomes
MedAdvisor Overview The combined effect of adherence and persistence improvements leads to significantly better outcomes MedAdvisor Adherence impact (App only) Digital Adherence Program Adherence for 10 common medications Example Digital Adherence Program (DAP) – June 2018 to June 2019 +13% 12-20% a
Slide 41: FY21 MedAdvisor Australia performance providing foundation for growth
MedAdvisor Overview FY21 MedAdvisor Australia performance providing foundation for growth Pharmacy network Patients (m) Annual Recurring Revenue 3,566 3,672 2.0 6.3 6.6 3,297 1.7 3,099 5.4 4.5 1.2 1.1 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Lifetime Value/CAC1 Churn %2 Digital Pr
Slide 42: Patient & Medication Data powers programs to improve patient outcomes
MedAdvisor Overview Patient & Medication Data powers programs to improve patient outcomes Integrations globally with ~23 pharmacy dispensing systems and major chains. Integrations with NHS (UK) Patient Prescription Disease Prescriber Payer • Data on 57% of US • US -2.2B scripts p.a. • Concomitant •
Slide 43: New revenue model and improved margins via Dynamic Engagement
MedAdvisor Overview New revenue model and improved margins via Dynamic Engagement Adheris predictive analytics combined with new digital channel is the catalyst to optimize patient messaging Current Revenue Model Dynamic Engagement Model Select 1 or more channels MedAdvisor to determine best channel