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Medavail to exit pharmacy services, SpotRx, reduce staff by 75%
The Fly

Medavail to exit pharmacy services, SpotRx, reduce staff by 75%

The company said, "MedAvail is exiting the pharmacy services and SpotRx business. While the business has opportunities for growth and the company demonstrated an ability to significantly scale its retail pharmacy operations, it is not aligned with the company’s strategy to shorten its path to profitability. Based on the renewed focus on pharmacy technology and exit of pharmacy services, the company is reducing its staff by approximately 75 percent. The actions that are being undertaken by MedAvail are expected to result in annualized operating expense savings of $35 million to $37 million compared to the full year 2022. The company’s business following the exit from the pharmacy services business will solely consist of its pharmacy technology business. Total sales for the pharmacy technology business in 2022 is expected to be in the range of $1.2 million to $1.4 million, which included a retail segment that will not be part of MedAvail’s sales channel focus going forward. The company expects pharmacy technology to support strong growth in 2023 over 2022 with respect to this business. Further, pharmacy technology has historically attracted higher margins than the pharmacy services segment."

Published first on TheFly

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