Shore Capital has highlighted the strong trading momentum at MedPal AI (MPAL) , with its New Health weight-management service driving rapid revenue growth and improving customer retention.
In a research note titled New Health, new heights, the broker noted that October group revenue increased 28% month-on-month to £4.1 million, taking the annualised revenue run rate to ~£49 million, compared with £38 million in September.
New Health generated £3.6 million in October revenue, up 33% month-on-month, from ~29,400 orders. Repeat orders accounted for 37% of revenue, while 46% of eligible customers placed further orders, indicating encouraging customer retention without additional acquisition costs.
Since launching this summer, New Health has served more than 53,000 customers, including almost 20,000 new customers in October.
Shore Capital attributed the rapid expansion to growing UK demand for GLP-1 weight-loss treatments, operational expertise acquired through Remedi and the integration of artificial intelligence into the prescribing process.
The broker also highlighted MedPal's investment in expanding its GLP-1 dispensing capacity at Sarus Court in Runcorn, supported by September's £5 million fundraise. The expansion is expected to provide capacity for at least 14,000 orders daily later this year, potentially supporting more than £500 million in annual revenue at full utilisation, assuming average monthly pricing of £150.
Meanwhile, Shore Capital sees further opportunities in MedPal's established NHS prescription pharmacy operations, particularly within the care home sector. The rollout of its eMARx electronic medication administration software is expected to support customer growth and strengthen relationships with care homes.
However, the broker cautioned that rapid expansion creates working capital pressures, noting that MedPal continues to explore banking facilities to support its growth.
View from Vox
Shore Capital's commentary highlights the strong momentum behind MedPal's New Health business, particularly improving repeat orders and customer retention. The planned capacity expansion provides substantial scope for further growth, while the established care home pharmacy operations offer an additional opportunity for recurring revenue. Securing sufficient working capital will remain important as the business scales.