MedPal AI (LSE:MPAL) is moving rapidly from proving demand to building the infrastructure required to support a much larger digital healthcare business, with annualised revenue now exceeding £35 million and New Health continuing to scale at pace.
In a new ADVFN Watch List interview, Jason Drummond, CEO of MedPal AI, outlined the latest progress across the business, highlighting accelerating customer growth, rising order volumes and a major expansion of the group’s GLP-1 fulfilment capacity.
The numbers underline just how quickly the business has developed.
New Health generated £1.8 million of revenue in August, its first full month of marketing, while September is already running more than 35% ahead of August on a daily basis, according to Drummond.
More than 1.5 million of new orders or order value had already been processed in the first 19 days of September, with more than 12,000 orders recorded during that period.
The scale of the acceleration is particularly striking when viewed against the original expectations for the New Health launch.
Drummond said the business had initially prepared for around 300 new orders a day. Instead, MedPal has already reached days where it is dispensing as many as 2,000 orders, representing approximately £300,000 of business in a single day.
For a business still in the early stages of its commercial rollout, that represents significant operating momentum.
From zero to more than 25,000 customers
Customer acquisition is another key part of the story.
According to Drummond, New Health has grown from zero to more than 25,000 customers since July, with the business focused on combining competitive pricing with clinical support rather than relying on purchased customer acquisition.
That distinction could become increasingly important as the customer base matures.
While New Health is still relatively early in its development, Drummond said the business is already seeing customers return for further medication.
Around 27% of customers are already coming back, he said, despite many having only joined during the second half of August or the beginning of September.
That creates the potential for repeat orders to build alongside new customer acquisition.
For a digital healthcare platform, repeat customers can be particularly valuable because the cost of acquiring the original customer does not have to be incurred again for every subsequent order.
Building capacity for the next stage
The rapid increase in demand has also created a very different challenge for MedPal: making sure its infrastructure can keep up.
The company has raised £5 million, predominantly from existing shareholders, with the funding being used in part to expand GLP-1 fulfilment capacity at its Sarus Court facility.
The scale of the planned upgrade is substantial.
The more than 20,000 sq ft facility was originally designed to handle approximately 3,000 orders per day. MedPal is now investing just under £1 million into its GLP-1 fulfilment line, taking potential capacity to approximately 14,000 orders per day.
Drummond expects the expanded facility to be operational by the end of October.
At maximum capacity, the new line could represent approximately £2 million of order revenue per day, according to management.
That does not mean MedPal is forecasting revenue at that level. Rather, it illustrates the scale of the infrastructure being put in place to ensure that fulfilment capacity does not become a constraint on future growth.
Owning the healthcare journey
Another feature of MedPal’s model is the degree of vertical integration being developed across the business.
The company operates its own clinic, robotic dispensing, delivery infrastructure and technology platform.
Drummond argues that automation across the chain can reduce both cost and friction while allowing MedPal to maintain competitive pricing and clinical support.
That infrastructure is becoming increasingly important as the business moves from an early-stage growth story towards a potentially much larger healthcare platform.
There is also a significant working-capital component to rapid growth.
MedPal has to pay for medication before it is delivered, while payments from the NHS and other counterparties arrive later. As volumes increase, the amount of working capital required to bridge that timing difference also increases.
The latest £5 million raise therefore provides not only investment capital for additional fulfilment capacity, but also additional resources to support the working-capital requirements associated with a rapidly expanding business.
Growth rather than braking
Perhaps the clearest message from the interview is that MedPal is now focused on matching infrastructure with demand rather than slowing growth to fit existing capacity.
Drummond said existing shareholders had effectively encouraged the company to “keep this thing going”, with management now looking to expand the business and capture the demand it is seeing.
The company is also in discussions with major UK clearing banks regarding facilities to support the working-capital requirements of the expanding operation.
That is an important development as MedPal moves into its next phase.
The business has gone from zero to more than £35 million of annualised revenue in just 11 months, according to Drummond, while New Health has rapidly established a growing customer base and significant order volumes.
With additional fulfilment capacity expected by the end of October, the focus now shifts towards how quickly MedPal can scale the platform while maintaining service levels, customer retention and operational efficiency.
For investors following the MedPal story, the latest update provides a clear indication of the company’s current priorities: convert accelerating demand into recurring revenue, expand fulfilment capacity and build the infrastructure required to support the next stage of growth.
With New Health still in the early stages of its rollout and the new GLP-1 fulfilment line set to materially increase capacity, MedPal AI is entering an important phase in its development.
The challenge is no longer simply demonstrating demand — it is building enough capacity to meet it.
For more information visit – https://medpal.co/
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