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Pharma & Biotech

Mednow posts impressive fiscal 2Q results with C$1.89M in revenue thanks to its retail pharmacy segment

The Canadian healthcare technology company noted that it is “well capitalized” with a cash balance of C$16.4 million

Mednow Inc (TSX-V:MNOW, OTCQB:MDNWF), a healthcare technology company, has posted fiscal second-quarter results that saw its revenue jump 1,400% year-over-year on the back of strong sales from the company's retail pharmacy segment.

For the period ended January 31, 2022, the Toronto-based company, which provides virtual pharmacy and telemedicine services as well as doctor home visits, reported revenue of C$1.89 million compared to C$124,200 in the fiscal first quarter of 2021.

Significantly, Mednow’s retail pharmacies in British Columbia, Ontario, and Nova Scotia collectively generated C$1.41 million in revenue, while doctor services revenue totaled C$422,770 and C$62,100 in revenue came in from the firm’s pharmacy agreement with Mednow East Inc.

READ: Mednow launches Total Health personalized plans to counter consumer confusion about supplements

Mednow’s adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization for the quarter amounted to a loss of C$4.16 million as the company grew its technological and logistical infrastructure, increased headcount, marketing, and built out its internal teams to scale and grow its businesses.

Meanwhile, Mednow noted that it is “well capitalized” with a cash balance of C$16.4 million.

Mednow’s patient count increased quarter-over-quarter by nearly 20% to 19,000, from around 16,000 in the fiscal 1Q.

In the 2022 calendar year, Mednow’s revenue is forecasted to range between C$42.5 million and C$47.5 million, with its pharmacy services contributing C$42 million to the revenue pie, while around C$3 million is likely to come from its doctor services.

The company even offered a forecast for the 2023 calendar year, which put forecasted revenue in the range of C$105 million and C$110 million, with pharmacy services contributing the lion’s share of the revenue.

"I am so fortunate to work with a gifted team of Mednow employees who have tirelessly committed their time and skills to building out Mednow’s vision of leading the digital health evolution, to redefine pharmacy’s role in holistic care," Mednow co-founder and CEO Karim Nassar said in a statement.

"Over the last quarter, we have continued to accelerate revenue, while enhancing our technology applications, growing our tuck-in acquisitions, and increasing our uniquely differentiated product offerings. We are thrilled to be able to service customers coast-to-coast by summer 2022, and we will now embark on a significant national marketing campaign."

On November 24, 2021, Mednow closed a C$500,000 investment in Doko Medical Inc, a virtual and telemedicine healthcare provider operating across the U.S. currently servicing 38 states.

Meanwhile, Mednow has acquired the license and distribution rights of TruDiagnostic for a two-year term and a cash payment of US$150,000. Mednow said its customers will be able to order the epigenetic test in the second calendar quarter of 2022.

Mednow.ca provides virtual pharmacy and telemedicine services as well as doctor home visits through an interdisciplinary approach to healthcare that is focused on the patient experience. Mednow’s services include free at-home delivery of medications, a specialized PillSmart system and doctor consultations.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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