Empower Clinics Inc. (CSE:EPW, OTCQB:EPWCF) said its subsidiary MediSure Canada's next-generation diabetes testing solutions - MediSure Empower Test Strips - have been approved to be part of the formularies of four government jurisdictions, departments and programs.
The four government entities comprise the provinces of Alberta and Quebec, Veterans Affairs Canada and Non-Insured Health Benefits for first nations and Inuit.
"The inclusion of MediSure's next-generation diabetes test strips in these four formularies is a reflection of the quality, efficacy and safety of our product development expertise," said Steven McAuley, chairman and chief executive officer of Empower Clinics in a statement.
"This approval process can take months, and even years, and I am proud of the entire team at MediSure for achieving this important milestone with quality and speed. I'm confident that we will be announcing inclusion into additional provincial and private formularies shortly. These approvals have a direct, immediate and positive impact on revenues for MediSure and the sale of our next-generation diabetes test strips," he added.
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MediSure's blood glucose test strips are used everyday by thousands of Canadians managing diabetes and requiring regular blood-sugar testing. They are reimbursed through government drug benefit programs, Empower said.
A formulary is defined as a list of medicines covered as benefits for eligible beneficiaries, as determined by the individual drug plan. The purpose of a drug formulary is to help manage which drugs care providers can prescribe and that would be covered by a health plan. The goal of a medical formulary is to make sure that the drugs or products covered by a health plan are safe, effective and available at a reasonable cost.
Each jurisdiction has its own unique set of programs, eligibility criteria and cost-sharing structures. In Canada, provincial governments are responsible for administering public drug benefits plans. These plans have certain eligibility criteria and specific policies related to drug coverage and reimbursement. Each provincial program is independent, so access to medications, as well as devices and supplies, varies greatly across the country.
Health plan formularies are typically created by a committee set up by the plan's health insurance government or private company. The formulary committee would likely include pharmacists and doctors from various medical areas. This committee would then choose which prescription drugs and products to include on the health plan formulary.
Empower said MediSure has been engaging the governments of Ontario, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Prince Edward Island and New Brunswick for similar inclusion to provincial formularies. The company said it anticipates the approvals for inclusion in these formularies to take place soon. Earlier generations of MediSure test strips were successfully included in formularies across Canada.
Amendment to warrants
Empower also announced an amendment of the terms of 8,317,500 warrants that were previously issued in a private placement that closed on January 6, 2022. Effective as of Tuesday, January 24, 2023, the warrants will be amended to reduce the exercise price from 30 cents to 7.5 cents per share and to extend the expiry date from January 6, 2024, to January 24, 2025, it said.
Empower is an integrated healthcare company with multidisciplinary clinics, an at-home medical testing device company and state-of-the-art medical diagnostics laboratories. With a growing presence in the US and Canada, Empower is a leader in integrated healthcare and diagnostics solutions and is reshaping the model for patient-first wellness.
Contact the author at jon.hopkins@proactiveinvestors.com