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- MedAdvisor will pay £1 million (A$1.9 million) to UK pharmacy market app provider Charac
- Charac will see MedAdvisor pick up a 7.4 per cent shareholding
- MedAdvisor’s Rick Ratliff will become an NED on Charac’s board
- MedAdvisor will discontinue its UK operations, transferring pharmacy relationships to Charac
- Shares last traded at 22.5 cents
MedAdvisor (ASX:MDR) has announced it will invest nearly $2 million into UK-based pharmacy dispensary app Charac.
MedAdvisor and Charac do similar things – both allow customers to file prescription orders to their local pharmacy through the apps.
But part of MedAdvisor’s investment into Charac comes as part of a divestment strategy.
Cost saving strategy
To save costs, Australian MedAdvisor is discontinuing its operations in the United Kingdom, instead transferring its existing pharmacy relationships to Charac.
But the company isn’t pulling out completely.
MedAdvisor will pick up a 7.4 per cent shareholding in Charac through its investment which equals a solid £1 million.
Furthermore, MedAdvisor CEO Rick Ratliff will become a Non-Executive Director (NED) on the board of Charac.
Rationale for discontinuation
“Both companies share a common focus on pharmacy-enabled patient engagement,” Mr Ratliff said, outlining his rationale for the move announced today.
This [strategy] reinforces our commitment to the UK market … of creating a global impact in pharmacy-enabled patient engagement.
“We are confident that our collaboration with Charac will not only benefit our UK customers but will also open up exciting possibilities for growth in Australia/New Zealand and the US.”
MedAdvisor has partnered up with Chemist Warehouse, Amcal, Terry White, Guardian, and other Australian branches.
MDR shares last traded at 22.5 cents.
