Afya Limited Announces the Acquisition of RX PRO

Rhea-AI Summary

Afya Limited (NASDAQ: AFYA) has acquired 100% of RX PRO, a service facilitating connections between physicians and the pharmaceutical industry. RX PRO's innovative platform has reached over 45,000 physicians and is currently utilized by more than 12 pharmaceutical companies, forecasting a gross revenue of R$8.9 million for 2021. The acquisition cost R$35.4 million, with 85% paid in cash and the rest in Afya shares, plus an earn-out potential of R$21 million based on future revenue targets.

Positive

• Acquisition strengthens Afya's digital ecosystem.
• RX PRO's platform supports over 45,000 physicians.
• Potential for revenue growth with R$8.9 million forecast for 2021.
• Earn-out structure incentivizes future performance.

Negative

• 85% of the acquisition cost paid in cash could impact liquidity.
• Potential integration challenges with RX PRO's operations.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited, or Afya (Nasdaq: AFYA) today announced the acquisition of 100% of the total share capital of RX PRO, a solution that connects physicians with the pharmaceutical industry, providing specialized and personalized marketing for those companies, in a more convenient way for physicians. RX PRO does this by delivering free samples to a community of pre-selected physicians and offering medical updates regarding pharmaceutical products and treatments in a fast and efficient way for doctors.

RX PRO has already delivered free samples to more than 45,000 physicians with an innovative digital experience, with an NPS of 83 and as of today has more than 12 pharmaceutical companies using its platform. The Company has an expected gross revenue for 2021 of R$8.9 million.

RX PRO incorporates the digital prescription pillar and further strengthens Afya's digital ecosystem thesis.

The aggregate purchase price (enterprise value) paid to sellers was R$35.4 million, of which 85% was paid in cash and 15% is paid in Afya Stocks. An earn-out of up to R$21 million can be paid related to gross revenue achievements for 2022, 2023 and 2024.

About Afya

Afya is a leading medical education group in Brazil based on number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering digital products to help doctors enhance their healthcare services through their whole career.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211001005701/en/

Investor Relations Contact:

Afya Limited

ir@afya.com.br

Media Contact:

Cíntia Moraes Marin

cintia.marin@afya.com.br

Source: Afya

FAQ

What is the acquisition cost of RX PRO by Afya?

Afya paid R$35.4 million for the acquisition of RX PRO.

How will RX PRO benefit Afya's ecosystem?

RX PRO will enhance Afya's digital ecosystem by connecting physicians directly with pharmaceutical companies.

What is the revenue forecast for RX PRO in 2021?

RX PRO is expected to generate a gross revenue of R$8.9 million in 2021.

What percentage of the acquisition was paid in cash?

85% of the acquisition cost was paid in cash.

What is the earn-out potential related to RX PRO's acquisition?

An earn-out of up to R$21 million can be achieved based on gross revenue targets for 2022, 2023, and 2024.