MedPal AI plc (AIM: MPAL) has reported a sharp acceleration in trading, with its New Health GLP-1 weight-management business generating £1.83 million of revenue in August, an increase of more than 800% from July.
MedPal AI Connects Pharmacy, Private Care and Software in a Rapid Growth Strategy
August was the first full month of trading for New Health following the launch of marketing in July, with the business processing 14,487 orders during the month.
Based on August’s performance, New Health is operating at an annualised revenue run rate of approximately £21.9 million, while MedPal’s three recurring revenue streams collectively reached an annualised run rate of approximately £28 million.
The company stressed that annualised figures simply represent monthly revenue multiplied by 12 and should not be regarded as forecasts.
Highlights
- New Health August revenue reached £1.83 million, up 809% from £201,203 in July.
- Revenue has increased more than 100-fold in two months, from £15,496 in June.
- New Health processed 14,487 orders during August.
- More than 16,000 customers have purchased through New Health since its June launch.
- New Health’s August performance equates to an annualised revenue run rate of approximately £21.9 million.
- MedPal’s overall annualised run rate has increased from £5 million in June to £8.6 million in July and approximately £28 million in August.
- Management says the growth has been generated organically through trading rather than through the acquisition of an existing customer base.
- New Health operates at an estimated 25% gross margin following its introductory offer period.
- MedPal says its NHS dispensing operations generate gross margins above 27%, while its eMARx care-home software generates approximately 82% gross margins.
- The group is targeting three major healthcare markets: NHS prescriptions, care-home medicines management and private GLP-1 weight management.
New Health Revenue Tops £1.8m in First Full Month
New Health generated £1,828,319 of revenue from 14,487 orders in August, compared with £201,203 in July and just £15,496 in June.
That represents month-on-month growth of 809% and means revenue has increased by more than 100 times in the space of two months.
Since launching in June, New Health has attracted 16,051 purchasing customers, according to MedPal.
The company emphasised that the customer base has been built organically rather than purchased through acquisitions.
MedPal said the entire increase from an £8.6 million annualised group revenue run rate in July to approximately £28 million in August resulted from trading.
Three Recurring Revenue Streams
MedPal is building its healthcare business around three areas which management believes have significant recurring-revenue characteristics.
Its NHS pharmacy operations benefit from repeat prescription dispensing, while New Health customers typically receive treatment through monthly weight-management programmes.
The group’s eMARx electronic medication administration platform, meanwhile, generates recurring monthly software subscription revenue from care-home customers.
Management believes integrating these businesses could create opportunities to generate several revenue streams from individual customers while using its technology and automated dispensing infrastructure to control operating costs.
Targeting a Multi-Billion-Pound GLP-1 Market
Private weight management represents one of MedPal’s largest immediate opportunities.
The company cited research estimating that around 1.6 million adults in Great Britain had used GLP-1 or GLP-1/GIP medicines for weight loss during the year to early 2025.
At private treatment costs of approximately £150 per month, MedPal estimates this could represent a potential market exceeding £2.8 billion annually.
New Health’s gross margin is currently estimated at approximately 25% after its introductory offer period, with customer acquisition costs recognised in the month they are incurred.
NHS and Care Homes Offer Further Growth
MedPal is also targeting the much larger NHS prescription market.
Around 1.3 billion prescription items were dispensed in the community in England during 2025/26, at a total cost of £11.6 billion.
MedPal says its robotic dispensing hubs currently generate gross margins above 27% on NHS prescriptions and retain capacity to process additional volumes.
The company is also targeting Britain’s approximately 500,000 care-home residents through a combination of pharmacy dispensing, its eMARx medication-management platform and its Juno AI health companion.
MedPal estimates the NHS spends approximately £500 million annually on medicines for UK care-home residents.
CEO: “It Is Only the Beginning”
Founder and chief executive Jason Drummond said August represented the month when the company’s strategy began to come together, with New Health exceeding management’s expectations.
He highlighted the combination of prescribing, dispensing, delivery, administration and AI-enabled patient support as central to MedPal’s strategy.
Drummond said the objective is ultimately to create a model where one customer can generate multiple recurring revenue streams across the group’s healthcare platform.
With New Health moving from just £15,496 of monthly revenue in June to £1.83 million in August, the next key test will be whether MedPal can sustain customer acquisition and recurring monthly treatments at anything approaching the pace achieved during its first full month of marketing.
