MedAdvisor Limited

Well, hello, everyone, and welcome to MedAdvisor's FY23 results webinar. My name's Jane Lowe. I'm the Managing Director of IR Department, and I will be your moderator for today's session. Joining me today is Rick Ratliff, who's MedAdvisor's Managing Director and CEO. Good evening, Rick.

Hi, Jane.

Hello. And also with us is Ancilla Desai, who is CFO and Company Secretary for MedAdvisor. Good morning, Ancilla.

Hi, Jane. How are you?

Hi, very well, thank you. Okay, so the format for today's investor briefing is that Rick and Ancilla will walk you through the results which were released to the ASX this morning. also available on the MedAdvisor website. The formal presentation should take about 25 to 30 minutes. After that, we'll move into a Q&A session. If you'd like to ask a question today, you have two options. So to ask a question verbally, you can click on the raise your hand tab, which is in the ribbon at the bottom of your screen. And when it's time for you to ask your question, I'll enable your mic and give you a cue. Alternatively, if you prefer to type your question, you can do so using the Q&A tab in the bottom of your screen, and I'll read it out on your behalf. So now that the housekeeping's out of the way, I'd like to hand the floor across to Rick and Ancilla, who will get us started. Thanks, Rick.

Okay, thank you, Jane. Good morning, and thank you for joining us today for Medivisor Solutions FY24 full-year results presentation. My name is Rick Ratliff, and as Jane said, I'm the CEO and Managing Director of Medivisor Solutions. And joining me today is Ansela Desai, our Chief Financial Officer and Company Secretary. Together, we're very excited to have the opportunity to share with you our FY23 results, our accomplishments during the year, and our plans for the future. If we'll go to the next slide for a second, before we proceed, I do want to draw your attention to some important disclaimers. Our presentation today does contain forward-looking statements that are subject to risks and uncertainty. And if you'd like to read these disclaimers in further detail, you can refer to this page, page number two of the presentation deck, and feel free to reach out to us if you have any questions. So if we'll go to the next slide, our agenda for today is to walk you through our achievements today, as well as our solid financial results for FY23. Ansela will take you through those results. We're going to provide an update on our progress with our Australian and New Zealand, as well as our U.S. businesses. and give you an outline of our new OneMed Advisor rebranding that we just recently launched and provide a brief overview of our strategic direction. And then I'll give you an initial look at FY24. As Jane said, we'll leave some time towards the end for questions and answers. So if you go to the next slide, as we'll discuss this morning, I think it's important to understand that we believe our future is really in our hands as we work to achieve enduring profitable growth. Our singular purpose is to deliver innovative data-driven omni-channel and personalized solutions that are intended to simplify people's medication journey and empower the pharmacy of the future. This is a key theme you'll hear throughout the conversation this morning. So to get started, this time last year we committed to several strategic initiatives that we were going to accomplish in FY23. And so I want to spend a few minutes revisiting these objectives and the outcomes that we achieved. So if we'll go to the next slide. In FY23, we actually developed a program called the Pathway to Profitability. And this program, which was launched in late calendar year 2022, has really fortified our global platform and improved our cost base and sparked our engine for profitable growth. More specifically, we've successfully migrated 1,400 pharmacies from our GuildLink acquisition in the early part of the financial year, and we accomplished this ahead of time and under budget. In the US, we completed the majority of our technology migration to the cloud. which really initiated our launch into a targeted $3 million in savings over the next three years. As a result of the addition of the GuildLink acquisition and the pharmacies that came with that and the 10,000 new pharmacy locations in the US, we now have over 37,000 pharmacy locations in our network globally. And in addition, we more than doubled our digital reach to 90 million people across our network. Finally, as we looked at, as we're going to discuss later, actually, we announced the combination of MedAdvisor, Adheris Health, and GuildLink as MedAdvisor solutions. Turning to the business operations, during the year we initiated a restructuring of operations in A&Z as well as in the U.S. We also began the restructuring of global operations, which I'll comment on in a minute. Following the completion of the GuildLink transition, we reduced headcount in Australia by 20%, which will result in $2 million in annualized savings. In the U.S., the initial savings of $2.75 million have been partially reinvested back into operations technology in bringing on new talent. to the organization in the United States. We moved our legal and compliance operations over under our chief financial officer and company secretary. We restructured our commercial operations in both ANZ and the US under a president at each market. And we are in the final stages of a search for a global chief operating officer who will be based in the US with an initial focus on creation of shared services across technology, analytics and in our product functions to optimize support for our operations across our business and in the markets that we serve. And then finally, we're in the process of analyzing our UK business operations, and we'll be bringing that to a closure in the next 30 to 45 days and bring specific direction back within the first half of FY24. With regard to product innovation, we successfully demonstrated the benefits of our Australian Plus One platform in support of expansion of pharmacy scope of practice through a successful urinary tract infection pilot program that commenced in Queensland and is now expanded to New South Wales, Western Australia, and Victoria. In the US, we bolstered our team with new product and analytics leadership. Also in the US, the success of our early omnichannel programs or Thrive programs in FY23 are really driving momentum, as we'll talk about later, into FY24. And finally, we launched the initial phase of our five-year plan, which we will touch on in more detail later in the presentation. So overall, the MedAdvisor Solutions team accomplished a great deal within the year, made significant progress against our initiatives in FY23, and we could not be prouder of the team. So with that, I'm going to turn it over to Ansla to take you through our financial results for FY23. Ansla?

Thank you, Rick. I'm pleased to report that we continue to deliver momentum in FY23 on our pathway to profitability. Group revenues experienced a notable year-on-year uplift of 44.6%, reaching 98 million. Our gross margins climbed by nine percentage points to 60.6%, delivering a gross profit uplift of 24.5 million to 59.4 million. We also achieved an EBITDA improvement of 8.3 million in FY23, resulting in a 3 million loss for the year. And we currently hold a robust cash position of 14.2 million, providing us with a solid platform to assist in the delivery on our growth initiatives. Please note, all these financial figures are presented in AUD. In FY23, 80% of our revenue was generated in the U.S., with the majority attributable to our U.S. adherence programs. Nevertheless, having reported a circa 42% growth during the year, ANZ continues to be a strong contributor to the growth of our business. Gross profit benefited from the strong revenue uplift. but also greatly assisted by the strategic shift in product mix towards digital medication awareness programs, coupled with significant expansion in our digital patient reach in the U.S. This helped U.S. gross margins to increase by 10.3 percentage points to 54.6%. This slide on the EBITDA improvement provides a bridge between our FY23 loss of 11.3 million and the 3 million loss achieved in FY23. Two key elements to point out in this chart are that EBITDA benefited greatly from a 24.5 million uplift due to revenue and margin improvements in the year, The year also included 8.1 million of one-time or non-recurring costs, which we have highlighted on the chart. And in terms of cash flow, we start FY24 with a strong cash balance. Our gross cash at bank was 14.2 million at 30 June, assisted by a successful 14.6 million capital raised and our net cash position closed at 2.2 million, which is an improvement of 5.8 million year on year. During the year, we also paid the balance of the seniors earn out payment. I would now like to turn it back over to Rick to cover the rest of the agenda.

Okay, thanks, Angela. So we're now gonna take a close look at ANC and US business, and we're gonna start with the ANC business on the next slide. The expansion of our pharmacy network in Australia drove robust year-over-year growth, as you can see here, with FY23 revenues increasing by 42% to $19.9 million. Gross profit advanced by 43% to $16.7 million in FY23, and gross margin lifted slightly to 84.5%. The successful integration of the GuildLink acquisition, as I mentioned earlier, positioned us to now serve around 95% of the pharmacies across Australia. We also expanded our pharmacy network in New Zealand as well and grew that network to over 216 pharmacies through our Green Cross Health relationship. And as I mentioned earlier, our commitment to operational efficiency yielded approximately $2 million in annualized savings. And our Plus One platform played a very important role in keeping the nation healthy, facilitating the delivery of over 4.3 million vaccinations in FY23. We are incredibly proud of the accomplishments of our team in ANZ. It really underscores the effectiveness of our strategy in ANZ and the dedication of the team. So we'll go to the next slide. I wanted to provide an example of a significant opportunity that sits in front of us and shows the versatility of our Plus One platform. and the role that it can play in supporting Australian pharmacists through scope of practice reforms. In 2020, a urinary tract infection UTI pilot program was initiated in Queensland, leading to expanded practice authority for pharmacists in the state. And this authority included the ability to prescribe UTI antibiotics. And during a consultation, pharmacists can actually collect patient medical information, conduct clinical risk assessments, make informed clinical decisions, and maybe prescribe antibiotics or communicate the results to the patient's GP for further assessment. In 2023, New South Wales actually replicated the successful UTI pilot and Medivisor was chosen as a preferred software vendor by the university researchers, which really provided a fantastic endorsement validation of our software's effectiveness for these types of services. And now over 1,000 New South Wales pharmacies provide this prescribing service. And in August, Western Australia pharmacists were also granted rights to provide UTI prescribing services. And so today, over 2,400 pharmacies across four states use our software to facilitate UTI clinical recording and prescribing. More recently, Victoria has selected MedAdvisor Solutions to deliver four government-funded services in late 2023, which does include UTI types of services I just mentioned. We're expecting over a thousand pharmacies in Victoria to deliver these services by the end of this year. This case study just really underscores the transformative potential of our solutions in empowering pharmacists as they expand their roles and enhance patient care. Go to the next slide. So like Australia, the US reported significant numbers in the form of revenue being up 46%, which benefited, as we've said a couple of times already, from the substantial uplift in our awareness and adherence programs, which were really powered by the increased digital channel adoption by our pharmacy partners and pharmaceutical manufacturing clients. And just to take a break for those of you that are not aware of the MedAdvisor story, it's important to highlight that due to the seasonal nature of the US business, the first half of our financial year always delivers a significantly higher percentage of the full year revenue results and FY23 definitely followed this trend. with a significant increase in first half revenue and enabled us to get to the year over year of growth. Gross profit climbed 84% and gross margin rose 10.3 points to 54.6%. Again, a beneficiary of the change in the product mix to our digital awareness and adherence programs. Next slide. Related to the US business, it's driven primarily by pharmaceutical sponsored medication awareness programs that are delivered through our 32,000 retail pharmacy locations across the United States. These programs yield significant benefits to patients in the U.S. market as patients visit their pharmacist 12 times more frequently than they do their GP in any given year. Notably, vaccine awareness programs played an important role in FY23 results, accounting for 40% of our full-year FY23 revenue. This robust performance not only drove the growth of digital revenue, but also made substantial contribution to the FY23 results. An illustration of this success is reflected in one of our digital vaccine awareness initiatives during the year, which reached an impressive eight million patients and garnered a remarkable ten point eight percent click through rate. This resulted in an additional four hundred and twenty one thousand vaccinations and a five to one return on investment for that particular program. The chart on the right side of this particular slide highlights the details of over 115 awareness and adherence programs that ran across 15 different chronic disease categories that you can see in the chart. And these programs were represented across 35 different manufacturers and overall contributed to 60% of our revenue performance in FY23. This is to emphasize the diversity of the U.S. business beyond vaccines, which is very important. To move to the next slide, I want to walk you through a U.S. case study highlighting how our Thrive omnichannel intelligent patient platform addressed the challenge for one pharmaceutical manufacturer of supporting what they call new-to-brand patients. This program involved the leading life sciences brand in the cholesterol space, which was grappling with various pain points such as high void rate, one and done patients, and a stark variation in therapy duration between new and experienced patients. To help overcome these hurdles, we introduced our Thrive solution. This cutting edge solution employs predictive analytics and machine learning to individualize patient engagement across complementary channels, ensuring that communications are highly relevant, timely, and optimized. As you can see from the outcomes, they're very impressive. This program enrolled approximately 40,000 patients in the pilot program. It resulted in 54,000 incremental injections and 27,000 incremental prescriptions. And you need to note that there are two injections per prescription where the numbers come from. The success translated into 15.5% relative incremental lift over the control group in this particular program had an 18 to 1 ROI. We'll go to the next slide. Now we're going to get into our restructuring that we put in place in FY23. As a part of the restructuring, we actually combined the best of MedAdvisor, Adheris Health, and Guild Link to create a global force in patient engagement and community pharmacy impact. We are definitely committed to a unified approach now as one MedAdvisor solutions. And this rebrand and unified approach could not be successful without the support of our global team operating under a single vision, mission, and set of values that we all believe in. You can see the values that we're focused on operating with integrity, innovating with passion, being proactive problem solvers, commitment to community, continuous improvement, and leveraging the collective strengths of our teams. We also want to bring attention to our social responsibility and our journey along this path. We do take great pride in emphasizing our resolute dedication to providing groundbreaking patient engagement solutions, all the while being acutely attuned to our environmental, social, and governmental obligations. David Dismukes, MetaVisor Solutions is currently in the nascent stage of formulating a suitable strategy to recognize the and navigate our ESG risk. David Dismukes, Which encompass the development of a structured governance framework and we'll be providing additional information as we move forward in our strategy evolves. So now looking to the future. I want to highlight a few of the catalysts for growth and comment on our strategy going forward. We are positioning MedAdvisor Solutions as a preferred digital innovation partner to empower pharmacy of the future and help people simplify their medication journey. We do acknowledge the growing desire for personalized services and knowledge, and we're keenly attuned to the promising potential that could be delivered through the benefits of AI. The pharmacy will continue to play an important role in driving awareness and adherence to vaccines and chronic medications, in addition to evolving their role to support patients on specialty medications. This role will expand further as community pharmacy becomes a more integral part of the health care system and supports a heightened focus of governments in achieving improved health equity. We'll go to the next slide. So we formulated our initial five-year plan during the latter part of FY23. We have pinpointed several strategic initiatives that represent a total addressable market of approximately $20 billion. It's important to understand that these initiatives will be steered by the following key drivers, increasing patient reach and engagement, strengthening and expanding care solutions, entering new adjacent markets as well as product-wide spaces, moving towards a unified global platform and modern tech stack, building one team with a common high-performance culture. We're currently further analyzing these initiatives to determine where the opportunities are for expansion, the level of investment required, and timelines needed in order to execute each initiative. Go to the next slide and now focus on FY24. So our immediate focus is on achieving objectives to drive profitability and sustainable growth as a global leader in personalized medication management. More specifically, we are committed to advancing the rollout of our single global platform while enhancing functionality and cloud-first automation, facilitating regional expansion at a reduced cost. We will continue to find operating efficiencies that optimize costs across our business as we also establish a global product innovation structure intended to earn recognition as a digital product leader and innovator of the pharmacy of the future. We'll go to the next slide. So we're entering FY24 with strong momentum. We anticipate continued growth in revenue and solid improvement in profitability. To achieve these goals, we remain committed to key themes, including our vaccine program expansion, digitalization across markets, and the opportunities that will come from pharmacy scope of practice expansion. Our US pipeline heading into FY24 is stronger compared to the same period last year with over 65% of our projected FY24 U.S. revenue currently contracted compared with less than 35% contracted this time last year. Importantly, we are already seeing expansion of vaccine programs in the U.S. We have contracts across multiple vaccine categories and clients. We also see further growth in A and Z through enhanced support of community pharmacies delivery of vaccine programs. We expect digital patient reach in the US to exceed 120 million in FY24. This combined with continued momentum of our Thrive programs is expected to result in more than 40% of FY24 revenue and similar gross margins to those in FY23. And in A and Z, we expect further growth to come from assisting pharmacies in delivering better outcomes to patients through health programs. So with that, thank you. That concludes the presentation. We hope this has shed some light on both our company and promising opportunities ahead for MedAdvisor solutions. And I'm now pleased to invite you to ask questions and I'll turn it back to Jane.

Thank you, Rick. And thanks, Ancilla. And with that, we'll now move into Q&A. So a reminder, if you'd like to ask a question today, you've got two different options. If you'd like to do it verbally, click on the raise your hand tab in the ribbon at the bottom of your screen. And when it's your turn to ask a question, I'll enable your mic and give you a cue. Alternatively, if you prefer to type a question, use the Q&A function in the bottom of your screen and I'll read it out on your behalf. And thanks to all those who have submitted questions already. So we'll start with this one. What has the feedback been from pharma companies on trial digital programs they've run with MedAdvisor so far?

So far, the responses have been extremely positive, particularly given that the results we're seeing with the digital programs are more effective than our traditional programs, and we also receive more immediate feedback on the programs themselves because we are text messaging for the most part to individuals. We have some understanding of click-through rates and actual interaction that you don't have in the paper world. So we're seeing very good response as well as I think that's being reflected in a strong pipeline growth coming into the FY24.

Thanks, Rick. Okay, so we will open up to a verbal question from Sarah Mann. Sarah, I'll ask you to introduce yourself and then please follow on with your question. Thank you.

Morning, Rick and Angela. Can you guys hear me okay?

We can. Yes, we can.

Great. I'm just an analyst at MOLA. So quick question for me. Firstly, just so you mentioned the digital vaccine program that you ran on 8 million patients had kind of a five to one ROI, good click through rate. Can you give us a comparison as to how that compares to, yeah, I guess your traditional or legacy kind of offline programs? What would a normal ROI look like for that program if it was run on paper? Yeah.

Yeah, the return on investment because of the differences in the cost for the delivery is a little bit of a challenge because it is related to how you deliver the actual messages and engage the patient. And we can potentially even deliver more messages in a given program. in digital where you cannot do that in the paper world. So the returns on investment are typically in the 5 to 1 to 10 to 1 range, whereas we do have some that are significantly higher than that. But that's where they tend to range. And the ROIs actually tend to be somewhat similar. It's the effectiveness of the program and the lift that Really, in particular for the vaccine programs, we have better visibility to. We can align the actual transaction on the digital program for a vaccine, and particularly COVID, because we're actually linking to the schedule, whereas you don't have some of that direct feedback that you've got with the paper world.

Gotcha. Okay. That's helpful. And then just another question on the pipeline. So you called out that it's significantly larger than where it was this time last year. Can you give us a bit more color around the shape? So, you know, clearly you've got access to more patients digitally, just interested in, I guess, how that flows through to a, like the average size of programs in the pipeline and then be like, you know, new potential programs or opportunities that are starting to open up to you now that you've got that reach.

Right. So that's correct. We do have more than double the reach that we had at the beginning of the financial year. So we're about 90 million patients and that really started to be more visible in the spring or springtime US, but in the second half of the financial year. So we're going to see the results more, which I think is partially your point in the first half of this financial year. So the real value of that reach is coming to come into play. And what we're seeing is that. The pipeline is still heavy on digital. It's about 60 plus percent digital, although we see the results are likely going to end somewhere in the 40 plus percent range on a much larger number. What has happened is in relation to FY23, where we were running digital programs on vaccines, as an example, we might have run those programs on a small number of vaccines in FY23, whereas going into FY24, we're seeing even more interest and there's a balance across those vaccines. So we're actually we have contracts. with seven different brands for vaccinations across some are still COVID, but RSV, HPV, hepatitis, et cetera. And so there's a good balance and diversification on those programs. And we're seeing as a result some decent revenue uplift. Some of this is new for the brands, and so I think we'll see even greater contract values as they get the same experience as those that have already been involved with the digital programs. that help, Sarah?

Yeah, that's really good, Kyle. Thank you. And then just last question for me, and I'll hand back, just the commentary around the Thrive tool, that sounded really positive in terms of the engagement and the results that you've got for your customers. Can you talk a little bit about what kind of incremental investment might be required to get it to a stage when you're ready to, I guess, push it out more broadly, or is it already at that stage now?

The base, what I would call Thrive 1.0 is in place today. And that's what was piloted really in FY23. And what we're seeing is we have more programs already contracted for FY24 and a solid pipeline. for Thrive programs in FY24. What's different with Thrive is that we actually do price those programs on a per patient basis. And the pricing is tied to the type of medication and type of program that we're gonna run. So it's highly variable, but it gives us a somewhat of a more predictable revenue stream in a contract term that tends to be longer than our traditional programs. So between the contract terms and the per patient pricing, we expect to see some good results from Thrive programs in FY24, rather, over what we just really got started in FY23.

Great, thank you. And sorry, just to follow up on that. So why is it a more longer term contract under Thrive versus your traditional programs?

That's a good question. So the Thrive programs, we're trying to position as longer term patient engagement programs versus more transaction oriented programs. So these are data driven and meaning that we have more data on the individual population. to help profile the individual and ensure that we're targeting messages at that individual, particularly for adherence programs, on the right frequency with the right kind of information. And that, in order to get the full value of the program and the ongoing engagement and the results on adherence in particular, again, requires or it's going to be more effective if it's longer term.

Makes sense. Thanks very much, guys. Yeah.

Cheers. Thank you. Thanks, Sarah. Okay. I will enable the mic for Elise Shapiro. Thanks, Elise. If I can ask you just to introduce yourself as well and then go ahead with asking your questions. Thanks.

Great, thanks. Elise Shapiro from Canaccord. Your commentary around that 65% of revenues booked for next year implies that you've kind of set some internal budgets around outlook and guidance. So what level of revenue growth are you expecting going into the next six to 12 months?

Thanks, Elise. We've not provided revenue guidance up to this point. And I think based upon the structure of the business, we're going to be in a better position to do that coming into the AGM. However, what I would say is we have budgeted for revenue growth. And as we've been emphasizing, focused on driving profitable growth. And that's the direction, and we feel confident that the pipeline, what we've contracted as well as the pipeline to support the gap to our budget is very strong.

Got it. And you just spoke to some investment in Thrive, but are there any additional investments in terms of headcount and Salesforce, especially on the US side, that are required to drive kind of capturing that pipeline and servicing the existing opportunities?

There is an investment to help support the longer term growth strategy. To support the FY24 strategy, there's a limited investment required. We are in the process of actually expanding the US sales team. We have two new very senior seasoned individuals that sell into this particular market and have been for quite some time. They're joining us in the next few weeks. So we will have the sales team to not only help deliver in the first half, but more importantly, our clients in the US or the pharmaceutical manufacturers are actually doing their budgeting for calendar year 2024 now. And so it's real important, as you know, to be in there selling and making sure that our value proposition in particular around our digital reach and thrive is in front of as many buyers as possible. And so that's extremely important. We are investing in our infrastructure. We're continuing to invest in that to ensure that it is not just moved to the cloud, but it is modernized and that we're driving the right level of integration and positioning on the data and analytics side to support not only our digital programs, but thrive, as you're alluding to. And that is already planned and in the budget for FY24. As we look to the future and we look to artificial intelligence and additional patient engagement, that's where we're doing the additional analysis for our five-year plan to determine what additional investments might be needed. Does that help?

Yeah, great. Thanks. And just one last one for me. You know, with the IRA in the US, which is relatively new and some changes with the Affordable Care Act, is there any way you can work with pharma companies to benefit from that in a unique way?

That's an area at least we're Analyzing right now, I would say we don't really have a point of view yet, but likely there's some some opportunity, you know, as we look into the 2024 calendar year. But it is something that we're we're we're looking at right now. We really don't have a point of view at this point.

Thank you. Thanks, Elise. Okay, a reminder, if you'd like to ask a question, you can do so either using Q&A at the bottom of the screen or popping your hand up using the raise hand function. So we do have one here. What are the catalysts for growth in Australia from here? And how big is the opportunity from the scope of practice reforms for Medivisor?

On the first question, opportunities in Australia, outside of full scope of practice, we do, as we said, we've got presence in 95% of the pharmacy locations within the country. This gives us an opportunity to expand certain services that are in the area of potentially telehealth, e-commerce, et cetera, which is part of our five-year plan. If we do see any impact in our revenue, it would be later in the financial year, most likely more into the FY25. This year, the focus is really on the growth on health programs. We have a base platform for what we call health programs, very similar to the kinds of programs that we deliver with pharmaceutical manufacturers in the U.S., And we are investing in the sales team and investing in the platform capability to increase our revenue in the health program space. And this is also an area, by the way, where there is some synergies between the US and Australia. And we're looking at opportunities to deliver programs that might launch in the US but also be delivered in Australia. The other aspect of the growth opportunity is in relation to our platform around vaccines. We do provide a lot of support into the pharmacy for vaccine support and scheduling those vaccines and delivering and payment, et cetera. And we see a transaction model evolving that will deploy in in FY24 that will drive some incremental revenue. The transaction-based opportunity related to vaccines kind of moves over into some of the early work we're doing with the UTI pilots and the deployments that I described earlier. which are kind of a first step in full scope of practice. That's being expanded somewhat through what we're doing with Victoria and into a couple of different categories beyond UTI, and we expect that to grow beyond that. We're in the process right now of assessing what the long-term opportunity is as we start to see pharmacists have more capability to provide more clinical services to patients in their communities, but it's somewhat dependent on timing. So our question is really the timing of the change in those regulations and the adoption of those new services across the different states and the communities and the pharmacies themselves, but we're prepared to take advantage of that.

Thanks, Rick. Okay, might give you a break for a minute and move to a question for Ancilla. So you talk about EBITDA profit in FY24. Do you anticipate that you'll also move to operating cash profit in that same period?

Thanks, Jean. Yes. So we are going to see an improvement in EBITDA and also operating cash. So we see that happening because along with EBITDA improvement, we're also going to be, although we're investing in the business in the future, we've got technology investment, as Rick spoke about, but our OPEX as a whole is going to reduce year on year. And even as a percentage of our revenue, it will be significant. So that is going to result in an operating cash profit.

Excellent. Thank you. Can you just talk to the price increase in FY23 and whether you anticipate pushing through similar price increases each year?

You want to talk to the answer?

Yes, sure. So I'm assuming this is in relation to Australia. So in Australia, we put up a price increase in January this year, and it was about an average of 19%. So there was a 19% increase. A lot of those price increases are only coming into play right now. So we saw the full effect of the price increase coming in May and June. So we are going to now see a full year impact of that price increase. But from a SaaS fee perspective, we're really not planning for FY24 to increase prices per se. because the Guildlink customers who transitioned onto the MedAdvisor platform saw a significant increase in price as well. What we are focusing on, and as Rick mentioned, we're going to look more at transaction fees. So as we're working on the scope of practice expansion, there are going to be further avenues for transaction fees, and also, as we spoke about, health programs. So there will be a revenue uplift in Australia, but it's going to come from different avenues now.

Excellent. Thanks, Ancilla. Okay. So perhaps back to Rick, question here just on the lead times. So what are the lead times for adherence programs in the US looking like?

That's actually a very difficult question to answer because the programs vary so much. If it is an adherence program that is around a medication we've done work with in the past or a brand we've done work with, we can launch those programs fairly quickly and in some cases in less than 30 days. If it is a program with a brand that we've not worked with in the past and we've got to work through the design and the regulatory reviews, in the implementation of the programs, then those can take up to 90 days or more to get put into place. So they do vary. And this is for both in the US we do adherence, but we also do awareness. So we do help patients to understand when there are alternative medications available if a certain medication is not as effective. We call those awareness programs. Those programs we can launch fairly quickly as well. In fact, in some cases, the timelines are much shorter because they're not quite as complicated. The measurement approaches are also different, so it makes it a little bit easier in some cases.

Thanks Rick okay i'm conscious we're getting pretty close to time, so we might make this our last if not one of our last questions. Can you just talk to any of the options that you're looking at exploring for the UK business.

Yeah, so the UK business, we had set some expectations on the market, restarting in the market and achieving certain penetration in the market. While we did make progress and we got close to 100 pharmacies on board in the second half, which has really been our focus, it's not moved as quickly as we would like. So the options are investing in getting the product to a place where it is more in line with the Australia product and competitive in the market because the competition is heating up in the market. or actually pulling out of the market and focusing on the US and in Australia only. There's some options there in the middle that we're considering that might allow us to actually focus on a different segment of the market and partner to deliver. And so that's more of a hybrid approach. actually, and we'll draw a conclusion on the direction, like I said, you know, here in the first half and provide more clarity once that's finalised.

Terrific. Thank you. Okay. Well, at this stage, we have no further questions in the Q&A queue. So with that, I might hand back to you, Rick, for any closing comments before we wrap up.

Okay. Sure. Sure. Thank you. Thanks, Jane. And I appreciate everyone attending today's presentation and for the questions that have been asked. We are very, very optimistic about the direction that MedAdvisor Solutions is heading and the opportunity to drive profitable growth and be a leader in helping patients simplify their medication journey and empower patients. pharmacy of the future. So we're looking forward to additional conversations with many of you. I'll be in Melbourne next week, as well as Sydney the following week, and look forward to continuing the conversation. So thanks again.

Excellent. Well, with that, I'll say thanks to you, Rick, and also thanks to you, Ancilla. And thanks for everybody for joining us today. We look forward to keeping you across MedAdvisor's progress. And with that, I'll invite you all now to disconnect. Thank you. Thank you.