The MedAdvisor Ltd (ASX: MDR) share price is soaring today after the company announced an extension of a health program deal.
In early afternoon trade, the medication management platform provider's shares are swapping hands for 33.5 cents, up 3.8% after reaching an intraday high of 35 cents.
Let's take a closer look at what's driving the MedAdvisor share price higher today.
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Health program extension
In its release, MedAdvisor advised that a global pharmaceutical company has extended its United States health program deal for an estimated additional 3 months. The contract extension is expected to generate US$4.7 million in revenue for MedAdvisor.
This follows a previously signed agreement that saw MedAdvisor provide its platform to the pharmaceutical company over a 5-month period. That deal alone was worth US$3.7 million.
Although MedAdvisor did not specify which company was behind the contract extension, it is believed to be from a top 10 global pharmaceutical company.
Words from management
MedAdvisor CEO and managing director Robert Read hailed the company's success, saying:
We're delighted to have another health program extended in the US market. These health programs deliver tailored content specifically to the right patients based on advanced algorithms and are designed to ensure they are aware of the benefits of certain medications or vaccines.
MedAdvisor continues to expand its global deal pipeline as it establishes scalable revenue streams both domestically and abroad. Our US pipeline of 2021 deals is ahead of this time last year.
MedAdvisor share price snapshot
The MedAdvisor share price hasn't moved much over the last 12 months, rising a modest 6%. Its year-to-date performance, however, is marginally down around 2%.
MedAdvisor shares reached a multi-year high of 66.5 cents in late May 2020 before treading lower.
Based on valuation grounds, the company commands a market capitalisation of more than $124 million, with 359.4 million shares outstanding.
