Mednow Inc (TSX-V:MNOW, OTCQB:MDNWF) told investors it has closed the acquisition of Infusicare Canada Inc for a cash payment of C$1.85 million.
The company said adding Infusicare, a specialty pharmacy offering biologic drugs, complements its strategy of accelerating full-service offerings through both organic development and mergers and acquisitions.
“Mednow continues to achieve its vision of connecting all people of Canada with access to amazing care, through the acquisition of Infusicare,” CEO Karim Nassar said in a statement.
“Specialty pharmacy will integrate well into our digital pharmacy which offers unique medication adherence solutions in addition to mental health support, epigenetic testing, and men’s wellness”.
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In its latest fiscal year, Infusicare generated C$9.3M in revenue and C$400,000 in gross profit from selling prescription medications and support services to its patients, Mednow said.
It said it aims to continue adding and growing services to its platform to change the way healthcare is delivered to patients.
The company noted that there has been a significant shift in pharmaceutical sales towards biologic drugs over the last decade. Whereas only one biologic drug made the list of the ten top-selling patented pharmaceutical products in 2006, biologic drugs accounted for seven products on this list in 2017 representing 42% of patented medicine sales in Canada.
Biologic drugs are genetically engineered proteins that target specific parts of the immune system that fuel inflammation.
Presently, biologic drugs are one of the fastest-growing pharmaceutical product segments in Canada, the company added. The high cost of biologic drugs, with treatment costs ranging from thousands to tens of thousands of dollars per year per patient, as well as their continued growth in usage, have contributed to a significant increase in pharmaceutical expenditure.
Mednow is a healthcare technology company offering virtual access with exceptional care. Designed with access and quality care in mind, Mednow.ca provides virtual pharmacy and telemedicine services, as well as doctor home visits, with convenience and through an interdisciplinary approach to healthcare that is focused on the patient experience.
The company’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.
Contact the author at stephen.gunnion@proactiveinvestors.com