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Pharma & Biotech

Mednow forecasts substantial revenue growth from strong demand for its virtual pharmacy services

The firm is forecasting full-year 2022 revenue of between C$42.5 million to $47.5 million and between C$105 million to $110 million in 2023

Mednow Inc (TSX-V:MNOW, OTCQB:MDNWF), the Canadian virtual pharmacy, has revealed its annual revenue forecasts for the 2022 and 2023 calendar years that highlighted strong growth driven by its pharmacy services.

The firm is forecasting full-year 2022 revenue of between C$42.5 million to $47.5 million, with pharmacy services contributing around $42 million and the rest from doctor services.

For the 2023 calendar year, Mednow is forecasting revenue between C$105 million to $110 million, again driven by pharmacy services.

READ: Mednow sees fiscal 1Q revenue growth speed up as it builds digital pharmacies and interdisciplinary model of care across Canada

As for its bottom line, Mednow said it expects to operate at a net loss in 2022 but is expected to post around $5 million to $10 million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in 2023.

Gross margins are expected to grow year-over-year, settling around 20% in 2022 and rising to 25% the following year. The number of active patients is forecast to at least double, with 40,000 to 45,000 in 2022 and 110,000 to 120,000 in 2023.

Toronto-based Mednow is a healthcare technology company that offers virtual access with a high-standard of care. Its virtual pharmacy Mednow.ca provides pharmaceutical and telemedicine services as well as doctor home visits through an interdisciplinary approach to healthcare that is focused on the patient experience.

Mednow currently operates in the provinces of British Columbia, Ontario, and Nova Scotia and plans to launch its Winnipeg, Manitoba, and Montreal, Quebec fulfillment centres in March 2022. A Calgary, Alberta fulfillment centre is in the works for later this year.

The firm’s fiscal first-quarter results saw its revenue jump 1,277.6% to $570,343, compared to $41,400 in the fiscal first quarter of 2020.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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