Mednow Inc (TSX-V:MNOW, OTCQB:MDNWF), Canada's on-demand virtual pharmacy, has said it achieved record third-quarter 2022 financial results, beating guidance.
The company reported revenue of $6.14 million for the three months ended April 30, 2022, a 225% quarter-over-quarter improvement, which it attributed mainly to sales from its retail pharmacy operating segment. Year-over-year, revenue was up 4,800%.
Mednow also announced that Ali Reyhany, currently a director, president and chairman of its board, has been selected to replace Karim Nassar, as its CEO effective today, June 15, 2022.
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The company said its retail pharmacies based in British Columbia, Manitoba, Ontario and Nova Scotia collectively generated revenue of $5.71 million, up from nil in the comparative period a year earlier. Revenue generated by doctor services was $382,537, also up from nil last year.
Revenue from its pharmacy agreement with Mednow East Inc came in at $41,400, as compared to $124,200 in the comparative period, which was generated from pharmacy agreements with Mednow East and an equal amount with Mednow West.
The company's gross margin for the quarter increased by 900% year-over-year to $1.23 million, up from $124,200, while its underlying loss (EBITDA) widened to $5.19 million from $3.36 million. It attributed the change to increased corporate costs, such as increased headcount, technology development and marketing as it continued to build out its internal teams in order to scale and grow its businesses. Adjusted EBITDA for the quarter was a loss of $4.44 million, up from $1.88 million.
Mednow said its patient count increased significantly quarter over quarter, growing by approximately 20% to about 23,000 in 3Q versus about 19,000 in 2Q.
For the calendar year 2022, Mednow forecast revenue in a range of $42.5 million to $47.5 million, with contributions of approximately $42 million from its pharmacy services and $3 million from doctor services. It said its gross margin is expected to average approximately 20%, with 40,000 to 45,000 active patients, and a net loss for the year.
For the calendar year 2023, the company now expects to produce adjusted EBITDA of approximately $5 million to $10 million. Revenue for 2023 is forecast to range between $105 million to $110 million, with $102 million contributed by pharmacy services and $5 million coming from doctor services. The gross margin is expected to average 25%, with 110,000 to 120,000 active patients.
Announcing Rehany’s appointment, Mednow said: “As the company's founder and architect of its culture, the company's board of directors believes Mr Reyhany is singularly qualified to serve as chief executive officer.”
“The company thanks Mr Nassar for his contributions to the company and wishes him the best in his future endeavors,” it added.
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.
Contact the author at stephen.gunnion@proactiveinvestors.com