Adheris Health has expanded its operating cost reduction program, aiming for more than 30% savings by FY27, while refocusing on high-growth pharmaceutical categories and enhancing its AI-powered patient engagement platform.
- Operating cost savings target increased to over 30% from FY25 to FY27
- New AI-enabled THRiV platform launched to improve scalability and efficiency
- Strategic shift away from vaccine revenue towards obesity, immunology, diabetes, and respiratory categories
- Expansion of pharmacy network and digital engagement capabilities
- Focus on higher-margin solutions and improved commercial alignment
Adheris Health Accelerates Cost Reduction Efforts
Adheris Health Limited (ASX – AHE) has announced a significant update to its operating cost-out program, extending its initial target of 15% savings in FY26 to an ambitious goal of over 30% cost reduction by the end of FY27. This move reflects the company’s commitment to enhancing operational efficiency while maintaining its strategic priorities and service delivery capabilities.
The company attributes these savings to a combination of organisational efficiencies and process optimisation, largely enabled by the rollout of its new AI-powered technology platform, THRiV. Launched in December 2025, this cloud-based platform is designed to streamline pharmacy workflows and patient engagement, promising scalable growth and faster paths to profitability.
Strategic Commercial Realignment
Alongside cost discipline, Adheris Health is reshaping its commercial focus. The company is deliberately reducing its reliance on vaccine-related revenues, which have been declining steadily, and pivoting towards higher-growth and higher-margin pharmaceutical categories such as obesity treatments (notably GLP-1 medications), immunology, diabetes, and respiratory conditions. This shift aligns with broader market trends and positions Adheris to capitalise on expanding opportunities, including a US market for GLP-1 drugs projected to grow at around 15% annually.
Moreover, the company is refocusing its business development efforts on digital messaging and its proprietary THRiV platform, aiming to improve revenue mix and profitability. This includes onboarding new pharmacy partners and expanding its digital network footprint, which is expected to grow patient reach by over 40% in the second half of FY26.
Enhancing Patient Engagement Through Innovation
Adheris Health is also investing heavily in digital innovation to differentiate its offerings. The company’s upgraded digital engagement suite incorporates AI-powered chat and voice tools that enable personalised, real-time conversations with patients, enhancing adherence and health outcomes. These innovations are designed to reduce pharmacist burden and improve the overall medication journey for patients.
The THRiV platform leverages advanced predictive modelling and AI to deliver precise patient segmentation and tailored messaging, optimising client spend and maximising return on investment. This evidence-based approach to patient engagement has been a cornerstone of Adheris Health’s 30-plus years of experience in the sector.
Outlook and Market Positioning
With these initiatives, Adheris Health signals a clear path towards improved financial performance and eventual profitability. The company expects to see the full benefits of its cost-out program realised by the fourth quarter of FY26, supported by a leaner labour cost structure and performance-based executive incentives aligned with shareholder value.
As the company continues to expand its pharmacy network and deepen its digital capabilities, it is well positioned to capitalise on evolving healthcare trends and patient needs in the US market, where it already works with over 25,000 pharmacies and reaches more than half the population.
Bottom Line?
Adheris Health’s bold cost-cutting and digital innovation strategy sets the stage for a transformative phase, investors will watch closely for execution and market response.
Questions in the middle?
- How quickly will Adheris Health realise the projected 30%+ cost savings by FY27?
- What impact will the shift away from vaccine revenue have on overall growth and profitability?
- How effectively can the new AI-driven THRiV platform scale patient engagement and improve outcomes?