Avricore Health Inc (TSX-V:AVCR, OTC:AVCRF) said it has successfully entered the second year of a multi-year growth plan to bring its flagship HealthTab network, a turnkey point-of-care data management and testing solution, to more pharmacies.
In a corporate update, the Vancouver, British Columbia-based pharmacy service innovator provided insights into its achievements last year and spelt out its key objectives for 2023.
Avricore said it realized record unaudited revenue for the year ending 2022 of just over $2 million. HealthTab, as the subsidiary, realized a profit of around $420,000, said the company. Avricore said it will begin its annual audit soon, with it being completed before the end of April.
READ: Avricore Health sees 3Q revenue soar by 662% as it successfully scales its HealthTab network
“Last year we set out bold targets and today we can demonstrate we’ve been able to achieve them,” said Avricore CEO Hector Bremner in a statement. “There’s no doubt that we are poised for significant growth in 2023 and beyond.”
Avricore noted that it had invested heavily in HealthTab’s incubation and development over the past few years.
Looking ahead
Clearly, the investments have paid off. In 2022, HealthTab moved into the “revenue phase,” successfully piloting and scaling to over 420 locations by the end of the year, thanks to Shoppers Drug Mart and Loblaws and instrument partner Abbott.
Avricore said it expects revenue to be earned largely in the latter half of any given year, as was the case in 2022. Overall, the company said it expects to see “strong year-over-year revenue growth in 2023.”
Acquisitions
The company said it is committed to “fiscal discipline,” which has allowed it to grow in “a sustainable manner.” Still, it expects further “asset acquisitions to support HealthTab growth,” additional staff to support customer needs and “API connections with key digital partners.”
Significantly, Avricore said it “does not currently have plans to raise equity but use cashflow and commercial debt vehicles to support growth.”
Infectious disease
In collaboration with Abbott and Shoppers Drug Mart, Avricore is now preparing to deploy 100 Abbott ID Now instruments with the objective of delivering the instrument’s strep tests.
According to the company, this will be the first fully cloud-connected network of such “analyzers in pharmacy, delivering on-site molecular tests for virus and real-time insights into treated populations.”
Avricore says it expects “an exciting year” with many indications of policy and funding support for pharmacy players.
The firm highlighted its 2023 objectives as follows:
- Further expansion of HealthTab with current partners
- Expansion of HealthTab in other pharmacy groups in Canada
- International expansion
- Hiring key positions to support technical and business development efforts
- Revenue growth and profitability
The point-of-care testing market is estimated to reach $93.21 billion by 2030, according to Precedence Research.
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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