MedBox, LLC
Business Plan




                MedBox, LLC
                1561 Carman Valley Drive
                Manches...
C. David Butler, PharmD, MBA
   25 years in pharmacy informatics, including:
        Chief Information Officer – Option C...
The Problem
 Patients must:
        Drive to a doctor for a diagnosis but no treatment
        Drive to a pharmacy for ...
The Solution
 MedBox ADR requires no effort from the physician or patient; the online pharmacist handles all data entry.

...
The Market
   Over 3 billion prescriptions annually and growing
   Over $200 billion in prescription sales and growing
...
The Business Model
   MedBox sells to the local pharmacy:
     $10-15K/MedBox ADR, plus
     $1/prescription transactio...
The Delivery Model
Value Propositions
A patient can:
      Save time
      Start treatment earlier
      Have better care
      Talk to t...
The Pharmacy Gain
Increased prescription revenue
                 Capture first-fill prescriptions at the doctor’s office
...
Pharmacy Breakeven
ADR Purchase                                                        $15,000
Physician Lease            ...
Contact

 C. David Butler, PharmD, MBA
 President
 MedBox, LLC
 1561 Carman Valley Drive
 Manchester, MO 63021
 Phone: 314...
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Med Box

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Med Box

  1. 1. MedBox, LLC Business Plan MedBox, LLC 1561 Carman Valley Drive Manchester, MO 63021 314-369-2988 David@MedBox.com www.MedBox.com
  2. 2. C. David Butler, PharmD, MBA  25 years in pharmacy informatics, including: Chief Information Officer – Option Care, Inc.   Led the development of first nationwide case management software system for home infusion services Clinical Program Management Director – Express Scripts, Inc.   On initial management team launching www.yourPharmacy.com - sold for $600 million  Led the launch of www.DrugDigest.org on Express Scripts website  Created consumer-oriented drug interaction Web pages recommended by National Library of Medicine  Published computerized medical decision-making research in leading journals  Received NIH SBIR grant approval for first drug-monitoring software  7 years teaching at Washington University in St. Louis School of Engineering:  graduate course in Database Management Systems  undergraduate course in Web Development  Have connections with leaders in:  American Medical Informatics Association,  American Society of Health System Pharmacists,  National Community Pharmacists Association, McKesson’s HealthMart Pharmacies,   Healthcare Information Management Systems Society
  3. 3. The Problem  Patients must:  Drive to a doctor for a diagnosis but no treatment  Drive to a pharmacy for treatment but no diagnosis  Doctor doesn’t know if patients get treatment or not  Information about outpatient prescription compliance is one of the biggest holes in patient care information  75% of people prefer picking up prescription at doctor*  Healthcare insurance plans believe current community health care processes contribute to:  poor treatment  increased healthcare costs  customer dissatisfaction *http://www.washingtonpost.com/wp-dyn/content/article/2007/10/26/AR2007102602484.html
  4. 4. The Solution MedBox ADR requires no effort from the physician or patient; the online pharmacist handles all data entry. Here is your Hi, May I see your prescription. Do I have a insurance card you have questions prescription to and credit card for the pharmacist? be filled. please? Sure, let me get Yes, where that for can I get you. refills? I can help you with You can use this You can find MedBox that. May I have the MedBox or the one in convenient prescription please? at your local locations at your grocery store. See local grocery store. We’ll seethere. you you there.
  5. 5. The Market  Over 3 billion prescriptions annually and growing  Over $200 billion in prescription sales and growing  200,000 office-based general practice physicians  60,000 pharmacies, dominated by two groups (30% share each):  23,000 chain pharmacies – growing faster, but half of revenues are from high-margin, “out front” merchandise  23,000 independent community pharmacies – generate almost $100 billion in prescription sales, but looking for ways to compete – this is our initial target market  Another 1/3 consist of discount stores and grocery stores – this can be a subsequent target market
  6. 6. The Business Model  MedBox sells to the local pharmacy:  $10-15K/MedBox ADR, plus  $1/prescription transaction fee  185-day breakeven  Pharmacy or Insurance leases local 5-10 mile radius physician office-space at $10K/year  MedBox ADRs will locate:  Initially  Small, single unit for solo practices  In the future:  Medium-sized or multiple units for group-practice settings  Larger, refill unit for strategic partners:  Grocery stores  Discount department stores  Senior retirement centers  MedBox sells Managed Care, Pharmaceutical Manufacturers and practitioners analyses from consolidated diagnosis and treatment compliance data  Local pharmacy maintains inventory and just-in-time prescription services for 20-30 physician offices  MedBox maintains the database, software, hardware and video connections
  7. 7. The Delivery Model
  8. 8. Value Propositions A patient can:  Save time  Start treatment earlier  Have better care  Talk to the pharmacist A physician can:  Offer patients treatment in the office  Gain additional revenues  Improve monitoring of refill compliance  Create a technologically-advanced practice  Ignore or interact with the MedBox ADR
  9. 9. The Pharmacy Gain Increased prescription revenue Capture first-fill prescriptions at the doctor’s office   10-40% of new prescriptions are never filled*  Another two-thirds go to chains and others  Increase prescription refills  Half of chronic medications are not refilled*  Incentivize physicians who improve compliance Reduced inventory Inventory is specific to physician’s practice  Reduced operational expenses Expensive high-traffic “street corner” unnecessary  Redundant safety check  Robot database verifies the right drug for the right patient * 1) Haynes RB, Taylor DW, Sackett DL (eds). Compliance in health care. The John Hopkins University Press: Baltimore, 1979;1-7. 2) Variations in Patient Compliance with Common Long-Term Drugs. Thomas S. Inui, William B. Carter, Roger E. Pecoraro, Robert A. Pearlman and Jyl J. Dohan. Medical Care, Vol. 18, No. 10 (Oct., 1980), pp. 986-993 (article consists of 8 pages) Published by: Lippincott Williams & Wilkins
  10. 10. Pharmacy Breakeven ADR Purchase $15,000 Physician Lease 10,000 Inventory for Initial Fill* 14,800 Start-up Expense $39,800 * 100 medications/ADR x 4 prescriptions in stock for each medication x $37 cost/prescription Prescription Gross Profit/Day** $ 216 Number of business days to break even** x 185 185-day Gross Profit $39,960 ** 18 prescriptions/day x ($50 revenues - $37 COGS - $1 transaction fee per prescription). Outpatient general practice physicians see 12-20 patients/day and prescribes 2-12 medications to approximately 2/3 of those.
  11. 11. Contact C. David Butler, PharmD, MBA President MedBox, LLC 1561 Carman Valley Drive Manchester, MO 63021 Phone: 314 369 2988 FAX: 636 230 2988 David@MedBox.com www.MedBox.com

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