Ann: MedAdvisor Partners with US Company iHealth Labs, page-16

Varuka - On a deal with Corum. The reason you give to avoid a relationship with Corum is exactly why now is the right time to talk with them. Your right they have been hammered for some time now and are at all time low as far as their share price. However, they have one of the best ranges of software and are cashed up.

The principal problem with Corum go back to previous managements lack of investment in product development and levels of service. They took their leading position in this sector for granted. This has been compounded by the tougher times in retail pharmacy and the emergence of more banner groups and corporates (including Chemist Warehouse). This has put great pressure on their pricing power and resulted in reduced revenue. MDR now has a capitalisation 3 times that of Corum. Corum's revenue will be around $16m and will report a profit this financial year. They will also have $8m plus in cash and no debt. Management is working hard to turn the decline around but it is tough without an acquisition that can add additional revenue steams.

Maybe MDR can make it big on their own but they still have a way to go. At present their income is only a fraction of Corum so the current market capitalisation is still based only on potential.

I hold both companies and believe there would be good synergy with a merged entity.