Medavail Holdings Inc. (MDVL) stock prices plummeted by 52.06% shortly after market trading commenced on August 12th, 2021. This brought the price per share down to USD$3.60 early on in the trading day.
Strong Q2 2021 Financials
MDVL stock reported strong second quarter of 2021 financial results, building on the momentum generated in the prior quarter. Sales were up by a massive 118% on a sequential basis, reflecting this snowball effect. The company is keen to spearheading the proliferation of its Retail Pharmacy Services in the Florida region in the second half of fiscal 2021.
Expanding Network of Partners
The company is also looking forward to adding continued value to its network of current partners. This is evidenced by its recent expansions in several key accounts. To this end, MDVL stock recently announced two significant new strategic endeavors. The first is a new Retail Pharmacy Services partnership with Zipdrug, which is a subsidiary of Anthem. The second endeavor is a new Pharmacy Tech integration with Epic’s pharmacy system software.
Promising Guidance
2020 had seen MDVL stock receive a one-time revenue recognition adjustment associated with a large customer agreement. Barring this, the company expected to deliver revenue growth surpassing 100% in 2021. Forecasts expect the company to maintain this topline growth rate through to 2022, on the assumption of the global economy returning to pre-pandemic levels. The growth forecasts are consolidated by high demand for the company’s offerings, as well as ongoing expansions into new geographies. Further compounding the strong outlook are the company’s various new strategic partnership opportunities.
MDVL Stock’s Sales Breakdown
Total net sales for the quarter ended June 30th, 2020 were up to USD$5 million, indicating a 118% increase. Retail Pharmacy Services sales were up by 162% to hit USD$4.5 million, while Pharmacy Tech sales were down by 10% to USD$0.5 million. The 2021 quarter saw the deployment of 12 MedCenters, while the prior year period only saw 7. Net loss came out to USD$10.5 million, up from the USD$6.5 million reported for the prior year period.
Future Outlook for MDVL Stock
Armed with the developments over the past few months, MDVL stock is poised to recover from the daunting movement of its share price. The company is keen to bounce back and ensure significant and sustained increases in shareholder value.
