Mednow Closes Acquisition of Infusicare Pharmacy
Mednow Closes Acquisition of Infusicare Pharmacy
TORONTO–(BUSINESS WIRE)–Mednow Inc. (“Mednow” or the “Company”) (TSXV:MNOW), Canada’s on-demand virtual pharmacy, is pleased to announce that further to its press release dated November 18, 2021, it has closed the acquisition of Infusicare Canada Inc. (“Infusicare”) for a cash payment of C$1.85M.
In its latest fiscal year, Infusicare generated C$9.3M in revenue and C$400,000 in gross profit from selling prescription medications and support services to its patients.
“Mednow continues to achieve its vision of connecting all people of Canada with access to amazing care, through the acquisition of Infusicare” said Karim Nassar, Chief Executive Officer of Mednow. “Adding Infusicare, a specialty pharmacy offering biologic drugs, compliments our approach to accelerating our strategy of full-service offerings through both organic development and mergers and acquisitions. Specialty pharmacy will integrate well into our digital pharmacy which offers unique medication adherence solutions in addition to mental health support, epigenetic testing, and men’s wellness”.
Mednow aims to continue adding and growing services to its platform that change the way healthcare is delivered to patients.
Biologic drugs are genetically engineered proteins that target specific parts of the immune system that fuel inflammation. Presently, biologic drugs are one of the fastest growing pharmaceutical product segments in Canada. The high cost of biologic drugs, with treatment costs ranging from thousands to tens of thousands of dollars per year per patient, as well as their continued growth in usage, have contributed to a significant increase in pharmaceutical expenditure.1
There has been a significant shift in pharmaceutical sales towards biologic drugs over the last decade. Whereas only one biologic drug made the list of the ten top-selling patented pharmaceutical products in 2006, biologic drugs accounted for seven products on this list in 2017 representing 42% of patented medicine sales in Canada.2
As Amir Ali Reyany-Bozorg and Felipe Campusano are directors of the Company, and each are also shareholders of Infusicare, the transaction contemplated under the Share Purchase Agreement (the “Transaction”), constitutes a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company is exempt from the formal valuation and minority shareholder approval requirements imposed by MI 616-101 pursuant to the exemptions in section 5.5(a) and 5.7(a) of MI 61-101, as neither the fair market value of the Shares, nor the consideration paid therefor, exceeds 25% of the Company’s market capitalization.
About Mednow Inc.
Mednow is a healthcare technology company offering virtual access with exceptional care. Designed with access and quality care in mind, Mednow.ca provides virtual pharmacy and telemedicine services, as well as doctor home visits, with convenience and through an interdisciplinary approach to healthcare that is focused on the patient experience. Mednow’s services include free at-home delivery of medications, a user-friendly interface for easy upload, transfer and refill of prescriptions, access to healthcare professionals through an intuitive chat experience, a specialized PillSmart™ system that packages prescriptions and vitamins by date and time, and doctor consultations.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements:
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including without limitation, the expectation that Infusicare’s specialty pharmacy will be integrated with the Company’s digital pharmacy platform, the expectation that the Company will continue to grow and add to its platform, and the expectation that the acquisition of Infusicare will bolster Mednow’s expertise in biologic drugs are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the Company will be able to integrate Infusicare’s specialty pharmacy with the Company’s digital pharmacy platform, that the Company will continue to grow and add to its platform, and that the acquisition of Infusicare will bolster Mednow’s expertise in biologic drugs. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the Company is not able to integrate Infusicare’s specialty platform with the Company’s digital pharmacy platform, that the Company does not continue to grow and add to its platform, and that the acquisition of Infusicare will not bolster Mednow’s expertise in biologic drugs. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.
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