Mobile-health Network Solutions Intends To Acquire Lifepack, Expanding into Indonesia's Growing Healthcare Market

Rhea-AI Summary

Mobile-health Network Solutions (NASDAQ: MNDR) has announced plans to acquire Lifepack, a leading Indonesian pharmacy and telehealth platform, for up to US$7.2 million. The deal involves issuing 875,000 new MNDR Class A Ordinary Shares at US$8 per share and a US$0.2 million cash payment.

The acquisition aims to expand MNDR's presence in Indonesia's healthcare market, serving 280 million people across 17,000 islands. Lifepack's platform provides BPOM-licensed prescription drugs, over-the-counter medications, and medical equipment through both online and offline channels. The company offers medical consultations via mobile app, website, WhatsApp, and physical locations.

The share issue price of US$8 represents a significant premium compared to MNDR's current share price of US$1.42 as of April 29, 2025. The acquisition is subject to due diligence and definitive agreements, with the final purchase price contingent on Lifepack meeting its 2025 revenue targets.

Positive

• Strategic expansion into Indonesia's healthcare market of 280M people across 17,000 islands
• Acquisition of Lifepack's established pharmacy and telehealth platform with BPOM licensing
• Deal value of $7.2M is performance-based, protecting against overpayment
• Lifepack has existing revenue streams through online/offline channels and growing user base
• Integration creates comprehensive O2O (online-to-offline) healthcare platform

Negative

• Share issuance of 875,000 new shares will cause dilution for existing shareholders
• High premium payment of $8/share vs current price of $1.42 may overvalue the acquisition
• Deal still subject to due diligence and final agreements - not guaranteed
• No current revenue figures disclosed for Lifepack
• Cash payment of $0.2M required despite uncertain deal completion

Insights

Financial Analyst

MNDR's acquisition of Lifepack represents strategic expansion into Indonesia's healthcare market with a performance-contingent structure that limits immediate financial risk.

MNDR's agreement to acquire Lifepack for up to $7.2 million represents an important strategic move into Indonesia's vast healthcare market of 280 million people. The deal structure is particularly noteworthy - it includes a non-refundable $0.2 million cash payment with the remainder ($7 million) to be satisfied through the issuance of up to 875,000 new shares valued at $8 per share. This represents a significant premium over MNDR's current trading price of $1.42 (as of April 29, 2025).

The acquisition is contingent on Lifepack achieving its 2025 revenue targets, creating a performance-based structure that protects MNDR from immediate financial risk. This approach demonstrates disciplined M&A strategy by linking payment to future performance rather than upfront commitments.

The transaction remains subject to due diligence and execution of definitive agreements, indicating this is not yet finalized. If completed, this acquisition would enhance MNDR's Southeast Asian footprint by combining its telehealth capabilities with Lifepack's established pharmacy platform and critical BPOM regulatory compliance in Indonesia.

Healthcare Technology Analyst

The planned Lifepack acquisition directly addresses Indonesia's unique healthcare delivery challenges across 17,000 islands with fragmented infrastructure. Lifepack's hybrid model - delivering BPOM-licensed prescriptions, OTC medications and medical equipment through both digital and physical channels - provides immediate market entry with regulatory compliance already established.

The strategic fit is compelling: MNDR gains an established infrastructure for medication fulfillment and distribution - critical components for effective telehealth deployment in emerging markets. Lifepack's existing consultations with physicians and pharmacists through digital channels (mobile app, website, WhatsApp) and physical locations provides multiple patient access points essential in a market with varying levels of technology adoption.

This integration creates a comprehensive O2O (online-to-offline) healthcare delivery system addressing primary care gaps, particularly for chronic disease management and preventive care - both significant public health priorities in Indonesia. The combined platform improves healthcare access for remote populations while maintaining regulatory compliance, addressing two critical barriers to healthcare innovation in Southeast Asia.

By leveraging Lifepack's established warehouse network and BPOM credentials, MNDR can accelerate market penetration while navigating complex regulatory requirements that often slow telehealth deployments in new markets.

Singapore, Singapore--(Newsfile Corp. - April 30, 2025) -  Mobile-health Network Solutions (NASDAQ: MNDR) ("MNDR" or "the Company"), a leading MedTech innovator ranked among Asia-Pacific's high-growth companies, today announced an agreement intending to acquire Indopacific Health Technology Pte. Ltd. and its subsidiaries, known as Lifepack, a leading pharmacy and telehealth platform in Indonesia ("Acquisition").

Focus on Indonesia

"This acquisition is a significant step for MNDR as we expand into Indonesia, a high-growth market," said Dr. Siaw Tung Yeng, PBM, Co-CEO and Senior Consultant Family Physician at MNDR. "Lifepack's platform aligns with Indonesia's primary care needs and complements our telehealth expertise. Through this partnership, we're building a telehealth-pharmacy solution that meets BPOM (Indonesian National Agency of Drug and Food Control) standards, serving 280 million people across 17,000 islands. We look forward to completing due diligence and finalizing this deal."

The Acquisition, added Dr. Siaw, would allow MNDR to combine its global telehealth platform with Lifepack's local expertise to serve many of Indonesia's primary care needs, including improved teleconsultations, prescription fulfillment, and healthcare delivery to remote areas, while emphasizing immunization, nutrition, and chronic disease management.

Dr. Siaw further commented, "By combining Lifepack's strong presence and understanding of the Indonesian market with MNDR's innovative telehealth capabilities, we believe we can create a truly transformative O2O healthcare platform that addresses the unique needs of Indonesian's diverse population and significantly impact healthcare delivery across the archipelago."

Lifepack: Enhancing Indonesia's Primary Care

Lifepack improves healthcare access in Indonesia, the fourth most populous nation globally, with over 280 million people and a growing demand for affordable medical services. Lifepack's hybrid model delivers BPOM-licensed prescription drugs, over-the-counter medications, supplements, and medical equipment through online and offline channels, serving millions nationwide. Lifepack also offers consultations with physicians and pharmacists, available via its mobile app and website, through WhatsApp and social media, and at physical locations, supported by an expanding warehouse network, to address chronic disease management and preventive care.

Compliant with Indonesia's BPOM regulations, Lifepack's scalable platform and steady user growth position it to lead the Indonesian digital pharmacy market. By supporting primary care needs, especially in remote and rural areas, Lifepack is a key part of MNDR's regional strategy.

MNDR would acquire Lifepack for up to US$7.2 million, contingent upon Lifepack achieving its revenue target for 2025. The consideration for the Acquisition is expected to be satisfied through the issuance of up to 875,000 new MNDR Class A Ordinary Shares, valued at an issue price of US$8 per share, alongside a non-refundable cash payment of US$0.2 million. The US$8 per share issue price represents a substantial premium to MNDR's current share price of approximately US$1.42 as of April 29, 2025, underscoring the perceived value and future potential of the combined entity. Subject to due diligence and execution of definitive agreements, the deal is expected to strengthen MNDR's presence in Southeast Asia through partnerships with Indonesian healthcare stakeholders.

"We look forward to completing the current due diligence process and proceeding to the completion of this Acquisition," said Dr. Siaw.

About Mobile-health Network Solutions

Ranked #41 in the Financial Times 2024 listing of 500 High-growth Asia-Pacific Companies, we are the first telehealth provider from the Asia-Pacific region to be listed in the US. Through our platform, we offer personalized and reliable medical attention to users worldwide. Our platform allows our community of healthcare providers to have broader reach to users through virtual clinics without any start-up costs and the ability to connect to a global network of peer-to-peer support groups and partners. Our range of seamless and hassle-free telehealth solutions includes teleconsultation services, prescription fulfillment and other personalized services such as weight management programs and gender-specific care. For more information, please visit our website.

About Lifepack
Lifepack is a pharmacy service that offers a variety of over-the-counter medications, prescription drugs, supplements, and medical equipment at affordable prices. The company provides original products, licensed by BPOM, and delivers across Indonesia. Lifepack services are available both online and offline, accessible through its website, social media channels, WhatsApp, and its mobile app.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to execute our strategies, manage growth and maintain our corporate culture; the Company's future business development, financial conditions and results of operations; expectations regarding demand for and market acceptance of our products and services; changes in technology; economic conditions; the growth of the telehealth solutions industry in Singapore and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in Singapore and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and Mobile-health Network Solutions specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise, except as required by law.

For media inquiries, please contact:
Mobile-health Network Solutions
2 Venture Drive, #07-06/07 Vision Exchange Singapore 608526
(+65) 6222 5223
Email: investors@manadr.com

Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5^th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250291

FAQ

How much is MNDR paying to acquire Lifepack in Indonesia?

MNDR is acquiring Lifepack for up to US$7.2 million, consisting of 875,000 new MNDR Class A Ordinary Shares at US$8 per share and a US$0.2 million cash payment. The deal is contingent on Lifepack meeting its 2025 revenue targets.

What is the premium of MNDR's Lifepack acquisition share price compared to market value?

MNDR's acquisition share price of US$8 represents a significant premium compared to its current market price of US$1.42 as of April 29, 2025, showing strong confidence in the combined entity's future value.

How many people will MNDR serve through the Lifepack acquisition in Indonesia?

Through the Lifepack acquisition, MNDR will serve a potential market of 280 million people across 17,000 islands in Indonesia, focusing on telehealth and pharmacy services.

What services does Lifepack currently offer in Indonesia's healthcare market?

Lifepack offers BPOM-licensed prescription drugs, over-the-counter medications, supplements, medical equipment, and healthcare consultations through multiple channels including mobile app, website, WhatsApp, social media, and physical locations.

When will MNDR complete the Lifepack acquisition?

The completion date is not specified in the press release as it remains subject to due diligence and execution of definitive agreements as of April 30, 2025.