Mednow Provides Corporate Update on Progress and 2022 and 2023 Financial Forecasts
- Mednow provides annual growth forecasts for the calendar year 2022 and 2023;
- In the 2022 calendar year, revenue is forecasted to range between C$42.5M and C$47.5M; approximately C$42M will come from its pharmacy services, while approximately C$3M will come from doctor services;
- 2022 gross margin is expected to average approximately 20%, with 40K – 45K active patients, and a net loss for the year;
- Revenue for the 2023 calendar year is forecasted to range between C$105M and C$110M, with C$102M from pharmacy services while C$5M will come from doctor services;
- 2023 gross margin is expected to average 25%, with 110K – 120K active patients;
- In the 2023 calendar year, Mednow is expected to produce approximately $5M to $10M in Adjusted EBITDA;
- Revenue is expected to grow 2,400% in 2022 relative to 2021 and 140% in 2023 from 2022;
- Mednow plans to launch its Winnipeg, Manitoba, and Montreal, Quebec pharmacy fulfillment centres in March 2022, and the Calgary, Alberta pharmacy fulfillment center by later this year.
Toronto, ON. (February 24th, 2022) – Mednow Inc. (“Mednow’’ or the “Company”) (TSXV: MNOW), Canada’s on-demand virtual pharmacy, is pleased to provide a corporate update on its yearly progress.
Financial Performance and Key Performance Indicators
Mednow’s first quarter 2022 results have highlighted strong quarter-over-quarter performance with revenue growth of 375% or C$570K compared to fourth quarter 2021 revenue of C$120K. Patients grew 50% to 20K patients versus the previous quarter. Mednow’s first quarter gross margin was 46%, with a cash balance of C$23M and no debt.
Mednow is providing annual forecasted growth figures for the calendar years 2022 and 2023. For the calendar year 2022, revenue is forecasted to range between C$42.5M to C$47.5M. Contributions of approximately C$42M will come from its pharmacy services, while C$3M will come from doctor services. The gross margin is expected to average approximately 20%, with 40K – 45K active patients, and a net loss for the year. For the calendar year 2023, Mednow is expected to produce adjusted EBITDA of approximately $5M – $10M. Revenue for 2023 is forecasted to range between C$105M to C$110M, with C$102M contributed by pharmacy services and C$5M coming from doctor services. The gross margin is expected to average 25%, with 110K – 120K active patients.
93% of Canadians trust pharmacists to be an important first point of contact for the healthcare industry. This fact has been showcased through the pandemic and has been a catalyst for patients to realize the importance of pharmacists and quality care.
Mednow currently operates in the provinces of British Columbia, Ontario, and Nova Scotia. At the end of January, Mednow received its final approval from the Ontario College of Pharmacists for its new flagship fulfillment center in Toronto. Located at 629 Eastern Avenue in Toronto, the site boasts 20K square feet of space, with room for further expansion and growth. This location houses a secured floor for the pharmacy, the Mednow online shop, the customer support centre, and the automation and technology to support and optimize Mednow’s PillSmartTM and nutraceutical offerings. Separately, this location houses the Toronto corporate office and the logistics command center for the entire Company.
Mednow plans to launch its Winnipeg, Manitoba, and Montreal, Quebec fulfillment centres in March 2022. The Company plans to launch the Calgary, Alberta fulfillment center later this year.
Mednow for Business
On January 14th, 2022, Mednow partnered with PACE Consulting Benefits and Pensions Ltd., and PACE Consulting MGA Services Inc. (“PACE”). This will allow PACE to market Mednow’s digital pharmacy and healthcare platform to its network of plan members. The partnerships with Sterling Capital Brokers and PACE should enable Mednow to connect with employers that seek to offer an improved standard of benefits to its employees, improve employee productivity and manage the costs associated with benefit plans through a digital-first, patient-centric healthcare platform. Additionally, this may allow Mednow to increase its patients on a larger scale, making it more efficient to acquire customers and lower costs.
Brand Refresh and New Logo
Mednow revealed its new logo, design system, and redesigned website on January 24th, 2022. The logo comprises four overlapping capsules, representing Mednow’s core pharmacy business. The M is fashioned after a heartbeat to evoke Mednow’s “people not pills” approach. Altogether, the “Heartbeat” design system is emblematic of Mednow’s mission to lead the digital health evolution using its people-first approach with helpful technology, redefining pharmacy’s role in holistic care.
Great Place to Work
On January 26th, 2022, Mednow was awarded the 2022 Best WorkplaceTM – Start-ups. In a year where many employers experienced high levels of employee turnover, dubbed by some as “The Great Resignation” Mednow was able to grow its employee base by more than three times to approximately 60 employees since its initial public offering in March 2021.
Specialty Pharmacy Services
Mednow acquired specialty pharmacy, InfusiCare Canada Inc. (“InfusiCare”), on November 18th, 2021, which is expected to bolster the Company’s expertise in biologic drugs, a growing class of drugs in the pharmaceutical industry.
On February 23rd, 2022, Mednow amended its agreement to acquire London Pharmacare Inc. (“London Pharmacare“) for aggregate decrease in gross proceeds of $1.735M which consists of an initial cash payment of C$1M and two subsequent cash payments of C$367.5K on February 23rd, 2023, and February 23rd, 2024 respectively. Mednow completed the acquisition of all issued and outstanding shares for Liver Care Canada Inc. (“Liver Care”) and London Pharmacare (collectively, the “Liver Specialty Group”).
In the company’s last fiscal year, annualized aggregate revenue and gross profit for InfusiCare and Liver Specialty Group were C$30.6M and C$2.5M, respectively. Mednow plans to integrate these acquisitions to streamline its technology with Mednow’s core fulfillment pharmacies. Furthermore, these acquisitions may add key specialty doctor relationships and large pharmacy relationships into Mednow’s current network of care.
About Mednow Inc.
Mednow is a healthcare technology company offering virtual access with a high-standard of care. Designed with accessibility and quality of care in mind, Mednow.ca provides virtual pharmacy and telemedicine services as well as doctor home visits through an interdisciplinary approach to healthcare that is focused on the patient experience. Mednow’s services include free at-home delivery of medications, a user-friendly interface for easy upload, transfer, and refill of prescriptions, access to healthcare professionals through an intuitive chat experience, a specialized PillSmart™ system that packages prescriptions, and vitamins by date and time, and doctor consultations.
Investor Relations Contact:
Lucy Chitilian, CFA
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements:
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, are forward-looking statements and contain forward-looking information, including statements relating to: Mednow’s plan to expand its operations and open fulfillment centres in certain locations in 2022, Mednow’s goal of integrating the technology of its strategic business acquisitions with its core fulfillment pharmacies, the optimization of Mednow’s PillSmartTM and nutraceutical offerings, Mednow’s ability to connect with employers, specialty doctors and large pharmacies, and Mednow’s ability to acquire customers and lower costs.
Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that Mednow will be successful in opening additional fulfillment centres, integrating and optimizing technologies, growing its network of patients, doctors and pharmacies, and lowering costs. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that Mednow will not be successful in opening additional fulfillment centres, integrating and optimizing technologies, expanding its network of clients and partners, and other risk factors set out in the Company’s final long form prospectus dated February 26, 2021 available for review on the Company’s profile at www.sedar.com. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.
This news release also contains future-oriented financial information and financial outlook information (collectively, “FOFI”) as defined under Canadian securities laws, prepared by Mednow’s management about Mednow’s reasonably estimated prospective results of operations, revenue, sales, and components thereof, all of which are subject to the same assumptions, risks factors, limitations and qualifications set forth in the above paragraphs. Readers are cautioned that FOFI are not guarantees of future performance, and should not be considered as such, since actual results may differ materially from those expressed in FOFI. Mednow and its management believe that FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgements. FOFI contained in this news release were made as of the date of this news release and is provided for the purpose of describing the belief of Mednow’’s management of the anticipated effects of the financing on Mednow’s business operations.
As a result, there can be no assurance that forward-looking information or FOFI will prove to be accurate, as actual results and future events could differ materially from those anticipated in this news release. Accordingly, readers should not place undue reliance on the forward-looking information or FOFI contained in this news release. Mednow does not undertake any obligation to publicly update or revise any forward-looking information or FOFI other than as required under applicable securities laws.