Why fund managers were disappointed by Adheris Health's ANZ sale
Adheris Health, formerly MedAdvisor, sold its profitable Australian and New Zealand business to fund a turnaround of its loss-making US operations.
31 Aug 2025 · 3 min read
In short
Adheris Health, formerly MedAdvisor, fell 30% in August 2025 after confirming the sale of its profitable Australian and New Zealand business.
The ANZ business was sold to Jonas for an initial A$35 million plus an uncapped three-year earn-out, with proceeds used to reduce debt.
Proceeds are being redirected to support the company's loss-making US operations, which remain focused on transformation initiatives and pipeline diversification.
Medication adherence company Adheris Health fell 30% in August 2025 as the market absorbed the reality of selling its profitable Australian and New Zealand business to repair the balance sheet and support a loss-making US division, according to DMX Asset Management's August 2025 Monthly Report, which described continued disappointment with the stock, then trading under the MedAdvisor name.
Selling the profitable business to fund the loss-making one
Salter Brothers' August 2025 Annual Report detailed the terms of that sale: an initial purchase price of A$35 million plus an uncapped earn-out based on three-year performance for the ANZ business, sold to Jonas, with proceeds earmarked to reduce debt, support ongoing strategic initiatives and optimise capital deployment. The manager noted the company was among its bottom three contributors for FY25, reflecting the headwinds encountered through the divestment process.
MDR remains committed to its long-term vision of growth and margin expansion, with ongoing efforts to unlock value through strategic review and portfolio reorganisation with the US operations still considering its strategic options.
— Salter Brothers, Annual Report, August 2025
What managers are watching next
With the ANZ divestment intended to fund a turnaround of the US operations, which Salter Brothers noted remain focused on executing transformation initiatives and diversifying its health program pipeline amid a challenging market environment, the key question for remaining holders is whether the strategic review and portfolio reorganisation can eventually unlock value in the US business, or whether it continues to be a drag funded by the sale of the company's best asset.
Questions
Why did Adheris Health sell its ANZ business?
Adheris Health, formerly MedAdvisor, sold its profitable Australian and New Zealand business to Jonas for an initial A$35 million plus an uncapped earn-out, with proceeds used to reduce debt and support its loss-making US operations.
Why did Adheris Health's share price fall so much on the sale news?
The stock fell 30% as the market absorbed the reality that a profitable core business was being sold to fund a struggling US division, rather than the sale being viewed as a purely positive balance sheet repair.
What is Adheris Health's strategy for its US business?
According to Salter Brothers, Adheris Health's US operations remain focused on executing transformation initiatives and diversifying its health program pipeline, with the company still considering further strategic options for that division.
4 managers, 19 comments, with each manager's latest recorded position.
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