Avricore Health Inc (TSX-V:AVCR, OTC:AVCRF) posted third quarter results that saw its revenue jump 662% year-over-year as the company successfully scaled its flagship HealthTab network, a turnkey point-of-care testing solution.
For the period that ended September 30, 2022, the Vancouver, British Columbia-based pharmacy service innovator reported revenue of $572,228, compared to $75,104 in the third quarter of 2021.
Meanwhile, Avricore’s revenue increased to $791,139 for the first nine months of the year, an 803% rise from $87,618 in the same nine-month period in 2021. The company chalked up the bump in revenue to more HealthTab systems deployed and tests sold.
WATCH: Avricore Health looks to take pharmacy services to the next level with HealthTab
Avricore reported gross profit for the nine-month period amounting to $287,948, versus $21,204 in the comparable period in 2021.
Significantly, Avricore succeeded in narrowing its comprehensive loss to $573,439 for the nine months this year from $1.49 million in the nine months that ended in September 2021.
The company noted that expenses decreased by 41% to $867,186 due to a decrease in consulting, marketing, and communications costs and share-based compensation expenses.
“Our target for this year has been to scale the HealthTab network, significantly increase revenues and make advancements toward profitability,” Avricore Health CEO Hector Bremner said in an earnings statement.
“In 3Q we’ve clearly demonstrated that we are achieving those goals,” he added.
By taking a disciplined and focused tack, Avricore has been able to fund its growth from existing capital. Moreover, the company’s HealthTab subsidiary is now operationally profitable, which Avricore pointed out means that it can “scale sustainably and deliver on its long-term objectives.”
Key developments
The company highlighted that 166 HealthTab systems were operating in Shoppers Drug Mart and Loblaw (TSX:L) family stores including pharmacist walk-in clinics as of September 30, 2022. These included 144 in Ontario, 15 in British Columbia, 4 in Nova Scotia, and 1 in New Brunswick.
In addition, HealthTab was placed in the first pharmacist-led primary healthcare clinic located in Lethbridge, Alberta. It was the first system placed in a Real Canadian Superstore.
According to the company, 416 participating Shoppers Drug Mart pharmacies and Loblaw family stores have now received their HealthTab systems and are offering screening tests to patients. Clearly, this practice in healthcare delivery is expected to expand, as provinces struggle to recruit family physicians. The primary focus is to screen patients at risk for diabetes and cardiovascular disease.
In-store signage and print material will let customers know they are able to request HealthTab tests, and existing patients will be made aware through direct outreach from their Shoppers Drug Mart or Real Canadian Superstore pharmacist based on their health profile, said the company.
Significantly, during the pilot with Shoppers Drug Mart, over 15,000 HealthTab tests were completed for over 6,900 patients and the data collected confirmed that the patients tested had previously undiagnosed diabetes, pre-diabetes, and heart disease. “Almost 60% of patients needed an intervention to better manage their chronic disease,” noted the company.
HealthTab is a point-of-care testing solution that combines advanced point-of-care technologies with a secure, cloud-based platform. With just a few drops of blood from a finger prick, the system generates lab-accurate results on the spot, and the data is reported in real-time.
The test menu includes up to 23 key biomarkers for screening and managing diseases like diabetes and heart disease. HealthTab has also recently added capabilities for bacterial and viral tests like strep and COVID-19.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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