MedPal AI - New Health revenue up by more than 800% as group run rate hits £28 million
Shares in our client MedPal AI plc (AIM: MPAL; FRA: Z1N), the AI-native digital health and pharmacy group, have risen by 22% to 6.35p on the back of a positive trading update for August 2026.
The headline news is that annualised recurring revenues (ARR) are now running at £28 million following continued growth across all three of the company’s business lines in August. ARR (calculated as monthly revenues x12) has gone from zero last October, passing £5 million in June this year, £8.6 million by July and is now up by 3.25 times in just a month.
Driving the growth in August was MedPal’s New Health business, the dedicated GLP-1 weight management clinic. This followed the start of its dedicated marketing campaign in July which looks to have done its job of attracting new clients. MedPal was keen to point out that New Health’s performance was delivered through organic trading rather than by acquiring a customer base, with clients won one at a time through fair pricing and service.
New Health generated revenue of £1,828,319 in August from 14,487 orders, with 16,051 paying customers having signed up since launch in June. August revenues were up by 809% on July’s numbers of £201,203, and up from a start of £15,496 in June. On an annualised basis, the New Health business alone is now running at c.£21.9 million of revenues.
As CEO Jason Drummond commented, "August was the month it all came together.” He added “…we believe it is an exceptional rate of organic growth. It is only the beginning.” MedPal has put significant investment into its operations over the past 12 months and August really validated this decision as the business showed that it is able to scale dramatically, building up a large recurring revenue base from nothing in less than a year.
MedPal AI share price year to date
Three substantial healthcare markets
As a reminder, MedPal operates across three areas of UK healthcare of substantial size (NHS prescriptions, care homes and private weight management) which all deliver recurring revenues and scope for further growth via cross selling. In particular, making NHS dispensing and the firm’s wider services available to eligible New Health customers is one area of focus.
Putting more colour on the individual business segments, in NHS prescriptions the NHS Business Services Authority reported that 1.3 billion prescription items were dispensed in the community in England in 2025/26 at a cost of £11.6 billion, equivalent to c.£967 million per month. MedPal's robotic dispensing hubs generate a gross margin of more than 27% on NHS prescriptions and have capacity for further volume growth, with the firm announcing in early July that it plans to expand its robotic pharmacy dispensing and distribution facility in Runcorn to support throughput of over 10,000 prescription items per day.
Meanwhile, UK care homes house around 500,000 residents, and MedPal estimates that the NHS spends on average £1,000 a year on medication for each of them, an addressable market of approximately £500 million a year. In addition, recently acquired software business eMARx specialises in electronic medication administration records for care homes and generates a gross margin of c.82%. Combining eMARx with the dispensing capabilities and agentic AI health companion Juno creates a differentiated integrated medicines-management proposition for UK care homes and a route to customer acquisition at scale.
In private weight management, research from University College London¹ published earlier this year estimated that 1.6 million adults in Great Britain had used GLP-1 or GLP-1/GIP medicines to support weight loss during the year to early 2025. It also found that an additional 3.3 million people said they would be interested in using weight loss drugs over the next year.
Private treatments cost c.£150 a month, representing a market potentially worth more than £2.8 billion a year. New Health's gross margin is c.25% after its introductory offer period (launched to attract new customers) with customer acquisition costs recognised in the month incurred.
Our analysis last week highlighted further opportunities in the GLP-1 market following the US approval of Eli Lilly's GLP-1 medicine Mounjaro to lower the risk of major adverse cardiovascular events. Morgan Stanley Research has forecast that the global GLP-1 market could reach c.£140 billion by 2035.
Watch CEO Jason Drummond talk about the August trading update.
For more information about MedPal AI visit the company’s dedicated Optimo Research page HERE
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Sources
¹ https://www.ucl.ac.uk/news/2026/jan/16-million-uk-adults-used-weight-loss-drugs-past-year
Disclosures
MedPal AI is a corporate client of Optimo Research Ltd.
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