MedAdvisor Limited

MDR Details

December 2020 Quarter Results: MedAdvisor Limited (ASX: MDR) is a provider and developer of a medication management platform – MedAdvisor to connect users to pharmacies and a network of GPs. As on 18^th February 2021, the market capitalisation of the company stood at ~$129.41 million. MDR achieved a revenue of $12.8 million for 1H21, up by 188% on pcp basis. The company recorded $10.3 million of operating revenue for Q2FY21, up by 350% on pcp owing to robust performance of Adheris, LLC acquired and growth (56% YoY) of Australian health programs. During the quarter, MDR acquired US-based Adheris to create scale and leverage Adheris’ pharmacy network. The company earned operating cash receipts of $10.7 million for Q2FY21, up 208% YoY. It raised $42.2 million equity from the institutional investors in Q2FY21 and holds $21.2 million cash at bank as on 31 December 2020.

Revenue Growth-FY19 vs FY20, Highlights (Source: Company Reports)

Outlook: MDR is progressing well on its transition and integration with Adheris. It believes combined scale and digital solutions with Adheris LLC will give it a significant opportunity in the US pharma market. The company has announced to release its 1H21 results, ending 31 December 2021 on 25 February 2021.

Stock Recommendation: The stock of MDR gave a positive return of 7.35% in the past one month and a negative return of 21.21% in the past six months. The stock is currently trading towards its 52-weeks’ low level of $0.276. The stock of MDR has a support level of ~$0.341 and a resistance level of ~$0.391. On TTM basis, we have valued the stock using an EV to Sales multiple of ~10.7x as compared to industry median (Healthcare) of ~17.7x and is thus seems undervalued. Considering the current trading levels, decent growth in results of Q2FY21, combined scale of MDR and Adheris, valuation on TTM basis, and key risk associated with the business, we give a ‘Speculative Buy’ rating on the stock at the current market price of $0.365, up by 1.388% on 18^th February 2021.

MDR Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

4DMedical Limited

4DX Details

Appointed Chief Information Officer: 4DMedical Limited (ASX: 4DX) is a provider of medical imaging hardware and software. It aims to commercialise its patented respiratory imaging software. As on 18^th February 2021, the market capitalisation of the company stood at ~$516.28 million. On 18 February 2021, 4DX announced the appointment and joining of Mr. Craige Pendleton-Browne, as its new Chief Information Officer (CIO). 4DX recently notified the market regarding the release of 78,390 securities from its escrow account on 12 February 2021. These securities will now be applied for quotation for listing on ASX.

December 2020 Quarter Results: The company informed the market of making considerable commercial and clinical progress during Q2FY21. During the quarter, 4DX announced delivering maiden commercial XV LVAS (XV Lung Ventilation Analysis Software) scan to a patient in Victoria ahead of its schedule. 4DX was added to the S&P/ASX All Technology Index (XTX.ASX) on 21 December 2020. During the quarter, 4DX announced its partnership with the University of Miami Health System for its maiden US research program to utilise company’ proprietary XV technology™ for studying patients with chronic lung diseases. It received $0.10 million as preclinical Software-as-a-Service (SaaS) revenue and $0.08 million subsidy under the Federal Government’s JobKeeper payment scheme. As on 31 December 2020, 4DX held cash balance of $43.04 million. During the quarter, net operating cash outflows stood at $4.64 million.

development, staff costs, administration, and general operating costs.

Net Cash Used in Operating Activities, Q2FY21 (Source: Company Reports)

Outlook: 4DX will begin to roll out XV LVAS to imaging centres and hospitals in Australia in both the outpatient and inpatient settings. It aims to rapidly establish its US research program along with number of studies, which is expected to commence over next few months. 4DX is also in the progress to validate potential reimbursement pathways and billing channels in healthcare for XV LVAS in both the US and Australian markets.

Stock Recommendation: The stock of 4DX gave a negative return of 16.37% in the past one month and a negative return of 12.09% in the past three months. The stock is currently trading below average of 52-weeks’ price band $1.25-$2.98. The stock of 4DX has a support level of ~$1.84 and a resistance level of ~$1.96. The share price of 4DX has broken the descending triangle pattern at A$2.03 level on the daily chart. Moreover, the price is trading below 50-period simple moving average on the daily chart, which indicates bearishness in the price. Considering the net loss of 4DX during FY17-FY20, negative operating cash flow, and technical analysis at current level, we give an ‘Avoid’ rating on the stock at the current market price of $1.890, down by ~3.077% on 18^th February 2021 and suggest investors to wait for a better entry level.

4DX Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

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