January 2012

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January 2012

  1. 1. Health 2.0 Lalit Dhadphale Chairman, President & CEO January 2012
  2. 2. Safe Harbor Statement <ul><li>This presentation may contain forward-looking statements regarding future events or the future financial and operational performance of HealthWarehouse.com. Words such as “targets,” “expects,” “believes,” “anticipates,” “intends,” “may,” “will,” “plan,” “continue,” “forecast,” “remains,” “would,” “should,” “projected,” “focus” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on current expectations, are not guarantees of future performance and involve assumptions, risks, and uncertainties. Actual performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such differences could include, among other things: effects of changes in the economy; changes in consumer spending; fluctuations in the stock market; changes affecting the Internet, online retailing and advertising; difficulties establishing our brand and building a critical mass of customers; the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results; risks related to business combinations and strategic alliances; possible tax liabilities relating to the collection of sales tax; consumer trends; the level of competition; seasonality; the timing and success of expansion efforts; changes in senior management; risks related to systems interruptions; possible governmental regulation; and the ability to management a growing business. Additional information regarding factors that potentially could affect our business, financial condition and operating results is included in our periodic filings with the SEC on our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements represent our views as of today and we expressly disclaim any intent or obligation to update any forward-looking statement. </li></ul>
  3. 3. HealthWarehouse.com <ul><li>Founded: August 2007 </li></ul><ul><li>Headquarters: Florence, KY </li></ul><ul><li>Stock Symbol: HEWA </li></ul><ul><li>Employees: 50 </li></ul><ul><li>Licenses: 50 States + DC </li></ul><ul><li>Certifications: DEA </li></ul><ul><li>Awards: </li></ul>
  4. 4. Our Mission Build the largest online health portal to deliver consumers: <ul><ul><li>Affordable medications </li></ul></ul><ul><ul><li>Health content </li></ul></ul><ul><ul><li>Health management tools </li></ul></ul>
  5. 5. Costly Inconvenient Unpleasant Buying Medications Today
  6. 6. Current Landscape Retail Mail-Order Prescriptions OTC Business to Business Only
  7. 7. Current Landscape *3Q11 Rx Sales Annualized Pharmacy Prescription Sales Internet RX Cash RX 3rd Party Generic RX Sales From RX Walgreens $ 41,167,750,000 0.5% 2% 95% 50% 65% CVS Caremark $ 37,364,878,611 1% 1% 97% 70% 38% Rite Aid $ 17,613,809,000 0% 1% 96% 55% 67% Walmart $ 14,977,282,000 2% 20% 70% 65% 6% Kroger $ 7,366,387,200 1% 25% 65% 50% 10% S afeway $ 3,676,563,000 1% 10% 80% 50% 9% Target $ 2,918,033,000 2% 25% 70% 50% 5% Supervalu $ 2,565,136,000 1% 10% 80% 50% 7% Kmart $ 2,518,880,000 1% 30% 60% 50% 16% Costco $ 1,327,891,000 1% 25% 45% 70% 2% HealthWarehouse $ 5,398,100* 100% 99% 1% 95% 75%
  8. 8. Positive Industry Trends: Name Brands Moving to Generics $212 Billion Next 5 Years Lipitor ®(1) Zyprexa ® Levaquin ® Effexor XR ® Flomax ® Aricept ® Cozaar ® Hyzaar ® Lovenox ® Abilify ® Prevacid ® Topamax ® Valtrex ® Adderall XR ® Cymbalta ® Aciphex ® Nexium ® Celebrex ® Proair HFA ® Plavix ® Seroquel ® Singulair ® Actos ® Lexapro ® Diovan ® Diovan HCT ® Tricor ® Lidodem ® Viagra ® 2009 2010 2011 2012 2013 2014 2015 $13.8 $12.6 $13.5 $28.3 $13.8 $6.9 $9.8
  9. 9. Case Study: Lipitor Cost May Go From $150 to $15 <ul><li>Rent </li></ul><ul><li>Inventory </li></ul><ul><li>Employees </li></ul><ul><li>$7 million to open </li></ul><ul><li>10 mile radius </li></ul><ul><li>No significant increase in overhead to sell nationwide </li></ul>Retail pharmacy needs 10x generic Lipitor prescriptions in 10 mile radius of store to cover current costs
  10. 10. Change In Retail Pharmacy Beer & Wine Café’s Groceries
  11. 11. Accreditation
  12. 12. Customer Acquisition Direct Search Engines Primary Care Clinic Groups Indirect Insurance / Employers Social Media
  13. 13. Elderly Medicare “Donut Hole” Uninsured / Under-Insured Convenience Chronic Conditions Younger Generation Typical Customers
  14. 14. Simplifying The Channel Cost paid by Consumer, Employer, Insurance Current Supply Chain HealthWarehouse Model Consumer Manufacturer Savings to Consumer, Employer, Insurance Manufacturer Consumer Wholesaler Distributor Pharmacy
  15. 15. Cost Savings March 2010 – Company data Miami, FL pricing Drug QTY HW CVS WG ATENOLOL 90 $9.50 $17.89 $14.99 LISINOPRIL 90 $9.50 $38.29 $29.99 METFORMIN 180 $9.50 $42.89 $45.49 HCTZ 90 $9.50 $11.09 $11.99 LEVOTHYROXINE 90 $9.50 $25.19 $20.89 ACTOS 90 $628.85 $761.00 $712.39 DIOVAN 90 $203.55 $253.99 $236.49 BENICAR 90 $280.50 $349.00 $308.89
  16. 16. Quick Delivery Time from Company’s Headquarters 80% of US population reached in 2 days Cincinnati, OH
  17. 17. Strong Customer Service Google Product Search - March 2011 CVS Walgreens Walmart Ratings Amazon Drugstore HealthWarehouse 3.5 4.0 4.5 5.0
  18. 18. Leading Technology in Industry: Pharmacy Fax Manager
  19. 19. Platform’s Ease of Use: Pharmacy Refill Manager
  20. 20. Current Opportunities <ul><li>Disruptive business model </li></ul><ul><ul><li>Eliminate inefficiencies in drug distribution </li></ul></ul><ul><ul><li>Provide consumers drug price transparency </li></ul></ul><ul><li>$ 212B brands off patent next 5 years </li></ul><ul><ul><li>By 2015, 94% of drugs sold will be cash generics </li></ul></ul><ul><li>Bring consumers affordable medications </li></ul><ul><ul><li>Low overhead </li></ul></ul><ul><ul><li>Fast shipping </li></ul></ul><ul><ul><li>Award-winning customer service </li></ul></ul>
  21. 21. Growth Initiatives <ul><li>Further Enhance Portal </li></ul><ul><ul><li>Increase traffic: </li></ul></ul><ul><ul><ul><ul><li>Content - Similar to WebMD </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Community - Web 2.0, Facebook, Twitter </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Search Engines – Google, Yahoo & Bing - VIPPS </li></ul></ul></ul></ul><ul><ul><li>Increase stickiness: </li></ul></ul><ul><ul><ul><ul><li>Monitoring – Online Health Management </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Mobile – Blackberry, iPhone & Android </li></ul></ul></ul></ul><ul><li>Pursue Strategic Acquisitions </li></ul><ul><ul><li>OTC players (revenues/customers) </li></ul></ul><ul><ul><ul><ul><li>Convert OTC customers to Rx </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Health 2.0 tools and sites </li></ul></ul></ul></ul>
  22. 22. Annual Financial Results Revenue Growth 50% Year-Over-Year Gross Profit Growth 229% Year-Over-Year 2008 2009 2010 Revenues $1,270,527 $3,783,542 $5,691,765 Gross Profits 299,900 1,148,284 $2,241,744 Gross Margins 23.6% 30.4% 39.4% Net Income ($667,301) ($2,439,502) ($3,691,674 )
  23. 23. Key Annual Statistics Prescription Growth 292% Year-Over-Year Refill Growth 496% Year-Over-Year 2008 2009 2010 Orders 22,951 59,614 71,376 Prescriptions 170 17,855 69,957 Avg. Order Size $55.36 $46.20 $79.74 Refills 17 4,235 25,238 Pageviews 1,144,189 4,057,959 5,248,524
  24. 24. Quarterly Financial Results Revenue Growth 80% Year-Over-Year 10,288,336 3,267,540 Pageviews 9 months ended 9/30/2010 9 months ended 9/30/2011 Revenues $4,217,652 $7,587,513 Gross Profits $1,617,407 $3,339,207 Gross Margins 38% 44% Net Income $(1,924,103) $(3,408,231)
  25. 25. Solid Prescription Growth 129% Y-Y growth
  26. 26. Solid Prescription Growth
  27. 27. Investor Appeal <ul><li>We are the only nationwide, online, mail-order pharmacy - large barriers to entry with: </li></ul><ul><ul><li>Technology platform that puts us years ahead </li></ul></ul><ul><ul><li>VIPPS accreditation </li></ul></ul><ul><ul><li>Licensed in all 50 states and the District of Columbia </li></ul></ul><ul><li>Strong revenue growth </li></ul><ul><li>Increasing website effectiveness </li></ul><ul><li>Excellent track record of high customer satisfaction </li></ul><ul><li>Market trends & economy favor our business model </li></ul>
  28. 28. Thank You 7107 Industrial Rd Florence, KY 41042 TEL: 1-866-885-0508 http://www.HealthWarehouse.com

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