An Open Letter to Mednow Investors
Mednow Inc. (TSXV: MNOW, OTCQX: MDNWF) reported remarkable Q3 2022 growth, achieving a 225% quarter-over-quarter and 4,800% year-over-year revenue increase. With nine licensed pharmacies across Canada, the company emphasizes digital transformation in healthcare. Significant investments were made in technology and personnel, enhancing their proprietary CRM and patient app. Mednow also acquired Medvisit and established a specialty pharmacy network, positioning itself as a leader in virtual pharmacy services. Despite macroeconomic challenges, management believes the company is significantly undervalued.
- 225% quarter-over-quarter revenue growth.
- 4,800% year-over-year revenue growth.
- Nine provincially licensed pharmacies across Canada.
- Investment in technology with a 12-member in-house team.
- Acquisition of Medvisit, enhancing service offerings.
- Established specialty pharmacy network with competitive advantages.
- None.
Mednow Co-Founder and CEO
Dear Shareholders, Partners, and Friends,
We appreciate your continued trust and support in
Mednow’s goal is nothing short of becoming a Canadian household name. We believe that the pharmacy customer deserves the same convenience and technology upgrades other industries have enjoyed. We have made great strides in our 18 months as a public company, supported by our accomplishments. We enter into this next growth phase for
It’s important to understand the long-term potential of the national digital pharmacy distribution network that has been established by
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Strong Financial Performance:
Mednow beats guidance and achieves record Q3 2022 financial results with225% Q/Q revenue growth and 4,800% Y/Y revenue growth -
Pharmacy Licenses: 9 Provincially licensed pharmacies make
Mednow one of the few national virtual pharmacies inCanada . State-of-the-art distribution infrastructure allows for fast, free prescription delivery acrossCanada and same-day prescription delivery in major Canadian cities and surrounding areas. -
Invested in tech: Investing in an area the pharmacy industry desperately needs,
Mednow recruited more top talent to bring our in-house technology team to 12 employees. This is the team that built and continues to improve the stable, scalable, secure and proprietaryMednow customer relationship management (CRM) and patient app.
TheMednow app makes it easy to manage prescriptions and provides patients with instant access to pharmacists, nurse practitioners, and non-prescription product shopping. Built for a virtual pharmacy environment, the app also coordinates delivery and allows Mednow’s cloud-based contact center to manage relationships with patients, payors and prescribers.
- Launched Mednow Virtual Care: In keeping with our pharmacy-centred healthcare approach, Mednow Virtual Care connects patients with pharmacists, doctors and nurse practitioners who diagnose virtually and prescribe medications responsibly.
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Acquired Medvisit: Canada’s largest and most established doctor home visit organization, serving the
Greater Toronto Area with “house call” doctor care. - Specialty pharmacy acquisitions: Established a comprehensive specialty pharmacy preferred provider network offering to address this high-growth drug category. With high barriers to entry, there are few competitors, and with Mednow’s “pharmacy of the future” infrastructure, we believe we have a major competitive advantage.
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Provider collaboration: By solving administrative challenges and offering clear clinical and educational value to mutual patients,
Mednow is positioned as the ideal pharmacy partner for medical clinics and virtual medicine providers. -
Mednow for Business (MFB): Partnering as the digital pharmacy solution for benefits providers and other organizations offers mutual benefits and allowsMednow to add patients at scale. MFB has secured several partnerships and continues to have discussions with other potential partners. -
Established product-market fit: I am most proud of how this team turns patients into fans. With over 300 reviews,
Mednow has earned and maintains an exceptionally rare 5-star rating onGoogle . TheGoogle reviews show that we are solving real problems and changing what Canadians expect from their pharmacy. Customer service is our focus, and in a market as price-regulated as pharmacy, personal customer relationships make the difference. -
Honors and accolades: We have scaled the
Mednow team to 60 employees and received honours from Great Places to Work in the categories of Healthcare, Technology, Startups, and for Women.
The macroeconomic climate has created uncertainty for many businesses. We have seen valuations severely decreased over the past 12 months. Some important factors to consider:
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Pharmacies in
Canada have proven to be recession and pandemic proof. - With the Canadian healthcare system in crisis we believe there is a need for healthcare innovation and an opportunity for healthcare innovators.
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We believe pharmacy digitization in
Canada is inevitable. WithCanada being three to five years behind the US in this regard, we look to US pharmacy digitization as the benchmark. -
The management team is proven in the pharmacy sector; our co-founders built and operate Care Pharmacies, one of the largest independent and pharmacist-owned group of pharmacies in
Canada with annual revenues of overC .$200M
Considering all factors, we believe that
The foundation has been built for
The best is yet to come from
Sincerely,
Ali Reyhany
About
Neither
1 This letter from the Chief Executive Officer of
2 This letter also contains future-oriented financial information and financial outlook information (collectively, “FOFI”) as defined under Canadian securities laws, prepared by Mednow’s management about Mednow’s reasonably estimated prospective results of operations and financial performance and components thereof, all of which are subject to the same assumptions, risks factors, limitations and qualifications set forth in the above paragraphs. Readers are cautioned that FOFI are not guarantees of future performance, and should not be considered as such, since actual results may differ materially from those expressed in FOFI. Accordingly, readers should not place undue reliance on the forward-looking statements or FOFI contained in this letter.
3 This letter refers to certain measures and ratios that are not recognized measures under International Financial Reporting Standards (“IFRS”). These measures and ratios do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from Mednow’s management’s perspective. Accordingly, the non-IFRS measures and non-IFRS ratios disclosed in this letter should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. We use the following non-IFRS measures and non-IFRS ratios in this letter: (i) Adjusted EBITDA (earnings before interest, tax, depreciation and amortization and transaction costs); and (ii) gross margin % (net sales minus the cost of goods/services sold divided by net sales). These non-IFRS measures and non-IFRS ratios are used to provide investors with supplemental measures of our operating performance and thus highlight trends in Mednow’s core business that may not otherwise be apparent when relying solely on IFRS measures.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221017005258/en/
Investor contact:
1-855-686-6300
ir@mednow.ca
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