The MedAdvisor Ltd (ASX: MDR) share price has been a positive performer on Monday morning.
At the time of writing, the medication management platform provider's shares are up 2.5% to 40 cents.
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Why is the MedAdvisor share price pushing higher?
Investors have been buying the company's shares this morning after the release of a trading update.
According to the release, MedAdvisor's US subsidiary, Adheris, has been performing better than it anticipated since being acquired on 17 November.
In light of this, the company is expecting Adheris' revenue to be higher than the guidance it previously provided.
For the period 1 July to the end of November, Adheris achieved revenue of US$14 million. This compares to half year revenue guidance of US$13.8 million.
This appears to have been driven partly by the signing of a one-year deal with a major US biopharmaceutical company at the end of last month. The unnamed US$70 billion biotech giant is leveraging its data and analytics platform to target patient awareness and adherence across the Adheris network.
FY 2021 guidance upgrade.
Pleasingly, management expects this outperformance to continue in the second half and has lifted its full year Adheris guidance.
For the 12 months, the company was forecasting Adheris to deliver revenue of US$26.4 million. It now expects this to be 7.5% higher at US$28.4 million. Management advised that this represents 12.2% growth year on year.
MedAdvisor's CEO and Managing Director, Robert Read, commented: "We're pleased to confirm that trading for the half-to-date for our newly-acquired Adheris subsidiary has exceeded $14m USD with one month of trading to go."
"Our investment thesis and diligence had sought to confirm that the Adheris business was delivering growth which could be accelerated with MedAdvisor's technology across the substantial scale the business had built over the last 25 years. We are pleased to see the core business improve its growth trajectory and look forward to investing in growth initiatives that will accelerate this even further," he concluded.
