CloudMD to Acquire Rxi Group of Companies, an Established One-Stop Patient Support Logistics Company and Leading Customer Relationship Management Technology Provider - Seite 2

Speciality drugs are defined as high-cost prescription medications used to treat complex, chronic conditions. In Canada, less than 1% of claimants accounted for 30% of total eligible costs in 2019 and specialty drugs are forecast to account for almost 46% of the average monthly certificate cost by 2025⁽¹⁾. Often times these drugs are very costly, difficult to access and challenging to navigate for patients, physicians, and pharmaceutical companies, leading to suboptimal outcomes across all therapeutic areas. Rxi’s platform focuses on user experience and personalizes patients' complete healthcare journeys.

The acquisition of Rxi will be synergistic across CloudMD’s platform of healthcare technology solutions and will be integrated with its electronic medical records (“EMR”) software, educational resources, healthcare navigation and enterprise health services. The addition of Rxi will expand CloudMD’s pharmacy offering and distribution and fulfillment channel across Canada. CloudMD will have access to Rxi’s network of 500 independent pharmacies to provide better, more localized, access to care.

Rxi was founded by CEO, Christian Marcoux, who has over 20 years’ experience within the specialty drug industry and has effectively launched and managed dozens of national patient support programs across Canada in various therapeutic areas. Previous to starting Rxi, Christian spent almost 13 years at Shoppers Drug Mart as part of the senior management team leading the Speciality Health Network.

Rxi's annualized revenue for calendar year 2020 is approximately $16.6 million with earnings before interest, taxes, depreciation and amortization (“EBITDA”) of approximately $600,000⁽²⁾. Rxi generates revenue through (1) wholesale and dispensary services, (2) licensing for its proprietary technology and (3) pharmacy partnerships. Upon closing, the acquisition of Rxi will be immediately accretive to CloudMD with synergies the company believes will drive further revenue and increased EBITDA margins through cross-selling and integration across its portfolio of healthcare technology solutions.

Dr. Essam Hamza, CEO of CloudMD commented, “The acquisition of Rxi is transformational for CloudMD and aligns with our vision and focus of providing holistic, patient focused care. It will be immediately accretive to our top line while adding new revenue streams and driving value and growth across many verticals of our business. Their revolutionary disease management software can be integrated into many of our healthtech solutions including our EMR platforms, IMD’s patient education platform, enterprise health services and pharmacy and clinic networks. It also provides a comprehensive platform to better care for complex and chronic care patients and gives us the ability to distribute and fulfill prescription drugs nationally. We welcome Christian and his team to the CloudMD family and look forward to working with them to continue unlocking value.”