Ann: Sales Channel Secured with Arrow Pharmaceuticals-MDR.AX, page-13

Correct me if I'm wrong, but as far as I'm aware, MDR charges pharmacies $100 per month for subscription.


Currently they have around 30% of pharmacies across Australia subscribed to their service, which is more than 1500 pharmacies according to their investor presentation.

So that means they generate a revenue of $1.8m (1500 x $100 x 12) per year. This is only their first revenue model out of the 3 presented in their presentation. And now they will also be able to access a further 3000 pharmacies, say if they managed to secure another 1000 pharmacies, that will be another $1.2m gross income.


The second revenue model imo could be the real kicker if Novartis decided to continue working with MDR after 12 months as the fees are scalable based on patient penetration. I've posted a few days ago about Novartis Top 5 Product Sales and they worth altogether $7.9 billion, I think that would be a serious patient penetration.


MDR definitely won't stay long at this level, technically it doesn't look great with a gap at 3.3c but in the long run it should reward holders handsomely.