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The Chronic Relief Pain CentersInvestor Presentation<br />
Assured Pharmacy owns and operates specialty pharmacies that deliver a high level of care, service and compassion for indi...
WHY INVEST<br />Profitable business model<br /><ul><li>New stores added for $80k - $115k in cap ex, plus working capital
Profitability at approximately 70 scripts/day, creating a rapid ROI
Substantial long term potential reoccurring patient revenue stream
Assured model can be replicated throughout the US
Minimal sensitivity to overall economic cycles</li></ul>Large & Underserved market<br /><ul><li>Prescription pain medicati...
Most pharmacy chains avoid/de-emphasize market due to its complexity and extensive regulatory requirements.</li></ul>Prove...
Achieved over 12% same store revenue growth in 2009 while slashing corporate expenses, expanding and enhancing our sales o...
26% of Americans age 20 years and over reported that they had a problem with pain that persisted for more than 24 hours in...
Sufferers are often misunderstood & alienated since it is the “invisible” disease</li></ul>Chronic pain is the #1 cause of...
Cost – 50 million workdays, $3 billion in wages, $100 billion in productivity
Accounts for 80% of all physician visits</li></li></ul><li>MARKET OPPORTUNITY<br />Target patient has chronic pain and wil...
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Assured Pharmacy Investor Presentation 052510

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Assured Pharmacy owns and operates specialty pharmacies that deliver a high level of care, service and compassion for individuals coping with chronic pain.

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Assured Pharmacy Investor Presentation 052510

  1. 1. The Chronic Relief Pain CentersInvestor Presentation<br />
  2. 2. Assured Pharmacy owns and operates specialty pharmacies that deliver a high level of care, service and compassion for individuals coping with chronic pain.<br />COMPANY INFORMATION<br />Pharmacy Locations:<br />Santa Ana, CA<br />Riverside, CA<br />Seattle, WA<br />Portland, WA<br />
  3. 3. WHY INVEST<br />Profitable business model<br /><ul><li>New stores added for $80k - $115k in cap ex, plus working capital
  4. 4. Profitability at approximately 70 scripts/day, creating a rapid ROI
  5. 5. Substantial long term potential reoccurring patient revenue stream
  6. 6. Assured model can be replicated throughout the US
  7. 7. Minimal sensitivity to overall economic cycles</li></ul>Large & Underserved market<br /><ul><li>Prescription pain medication is a ~$50 billion/year market in US
  8. 8. Most pharmacy chains avoid/de-emphasize market due to its complexity and extensive regulatory requirements.</li></ul>Proven management team<br /><ul><li>Management additions bring over 50 years of combined pharmacy/healthcare industry related experience.
  9. 9. Achieved over 12% same store revenue growth in 2009 while slashing corporate expenses, expanding and enhancing our sales organization, streamlining our processes and establishing an industry leading compliance program. As a result the Company is now well positioned for growth.</li></li></ul><li>INDUSTRY SIZE<br />Prescription Pain Medication is the fastest growth segment of the healthcare<br /><ul><li>Prescription Pain Medication in the US is an estimated $50 billion </li></ul>It is estimated that Over 50 million Americans suffer from debilitating chronic pain<br /><ul><li>>50MM people in the US suffer from chronic pain with 2/3 suffering for more than 5 years and experiencing pain almost 6 days a week (Harris Interactive/National Pain Foundation)
  10. 10. 26% of Americans age 20 years and over reported that they had a problem with pain that persisted for more than 24 hours in duration in the month prior to the interview (1999-2002 National Health and Nutrition Examination Survey)
  11. 11. Sufferers are often misunderstood & alienated since it is the “invisible” disease</li></ul>Chronic pain is the #1 cause of adult disability in the U.S.<br /><ul><li>Causes more disability than cancer and heart disease combined
  12. 12. Cost – 50 million workdays, $3 billion in wages, $100 billion in productivity
  13. 13. Accounts for 80% of all physician visits</li></li></ul><li>MARKET OPPORTUNITY<br />Target patient has chronic pain and will receive multiple prescriptions each month for the rest of his/her life<br />Many pharmacies choose not to service chronic pain<br /><ul><li>Pharmacists bear personal liability
  14. 14. Chronic pain medications are targeted for theft
  15. 15. Intense scrutiny by the DEA of record keeping & audit trail
  16. 16. Record keeping requirements are onerous</li></ul>Key pain medicines not stocked or inadequately stocked by many pharmacies, forcing delays in providing it to patients in need<br />Physicians are inconvenienced by current pharmacy options<br />
  17. 17. ASSURED PHARMACY’S APPROACH<br />Value proposition to Patients<br /><ul><li>A relationship pharmacy, we get to know our patients
  18. 18. Convenience, daily pickup of prescriptions directly from physician office - reduces amount of time required and cost to patient
  19. 19. Multiple delivery options available in addition to patient pick up
  20. 20. Safety in knowing that they are dealing with a Pharmacy that specializes in pain medication and pain as a disease state
  21. 21. Privacy, closed door pharmacies with low foot traffic
  22. 22. Full fills on paid scripts
  23. 23. Accept most insurance plans
  24. 24. “One-stop-shopping” for all prescription medications</li></ul>Value proposition to Physicians<br /><ul><li>Full service alternative to retail pharmacies, customized for pain specialists
  25. 25. Daily pickup of prescriptions by Assured reps – convenient, cost effective and minimizes risk of counterfeit prescriptions
  26. 26. Reduces time-consuming calls from chain pharmacies confirming scripts
  27. 27. Industry leading compliance program
  28. 28. Customized Patient / DEA / Drug Reports</li></li></ul><li>PHARMACY MODEL<br />Pharmacy Concept<br /><ul><li>Closed door pharmacy, walk in prescriptions not accepted
  29. 29. 800 to 1500 square feet, Medical Office Buildings, secondary & tertiary locations
  30. 30. Pharmacy layout – reception has look and feel of physician office waiting room
  31. 31. Constant video security surveillance</li></ul>Strong economics<br /><ul><li>Profitable stores at 70 scripts per day
  32. 32. Initial Staffing – one pharmacist with 1 to 3 support personnel
  33. 33. Large geographic coverage area (~150 mile radius)</li></ul>Low Start-Up Costs<br /><ul><li>Total start-up costs of less than $350,000 per location
  34. 34. $50k to $75k on physical location
  35. 35. $50k to $75k on initial inventory, with 90-day terms
  36. 36. $30k to $40k on furniture, equipment and software
  37. 37. Approx $150k in initial losses before pharmacy turns cash flow positive</li></li></ul><li>SINGLE STORE ECONOMICS<br />
  38. 38. LEADERSHIP<br />Robert DelVecchio – Chief Executive Officer<br /><ul><li>Appointed CEO in February 2005
  39. 39. Elected to Board of Directors in March 2005
  40. 40. Previously, CEO and President of Brockington Securities, Inc., a NASD licensed broker-dealer.
  41. 41. Mike Schneidereit – Chief Operating Officer
  42. 42. Joined Company in September 2008
  43. 43. Over 12 year career in IT, Operations & Finance in pharmacy, healthcare & real estate industries
  44. 44. Formerly, Director of Specialty Pharmacy and Information Technology of SureHealth, Inc.
  45. 45. Brett Cormier, C.P.A. – Chief Financial Officer
  46. 46. Joined Company in September 2008
  47. 47. Over 14 year career in Accounting & Finance in healthcare, real estate, franchising and media
  48. 48. Formerly, CFO & Treasurer of Sleep Holdings, Inc.
  49. 49. Michael Mapes – Chief Compliance & Security Officer
  50. 50. Joined Company on a Part-Time basis in March 2009
  51. 51. 30+ year career with U.S. Drug Enforcement Administration primarily in enforcement and prevention of pharmaceutical diversion
  52. 52. Jim Brown – Vice President Sales & Marketing
  53. 53. Joined Company in May 2009
  54. 54. Over 18 years of experience in the Pharmaceutical Sales industry, 15 years Sales Management experience
  55. 55. Formerly, Specialty Manager at Apria HealthCare</li></li></ul><li>NEAR TERM GOALS<br />2010<br /><ul><li>Profitability on consolidated basis with core 4 pharmacies
  56. 56. Target to open one additional pharmacy and secure 2 additional sites for 2011 opening
  57. 57. Continue sales organization enhancement and expansion initiative
  58. 58. No infrastructure changes required </li></ul>Beyond 2010<br /><ul><li>National footprint; 25+ pharmacies in five years
  59. 59. Minimal infrastructure changes required</li></li></ul><li>NEW PATIENT PER DAY TREND<br />
  60. 60. CONCLUSIONS<br />Proven business model<br /><ul><li>Assured model can be replicated throughout the U.S.</li></ul>Huge target audience<br /><ul><li>Estimated $50 billion dollar market; 75 million Americans with chronic pain</li></ul>Management goals aligned with investors; Focus on shareholder value<br /><ul><li>Management has invested alongside over $2 million</li></ul>Building a substantial operating company<br /><ul><li>Cohesive, seasoned management team with diverse strengths and backgrounds
  61. 61. Corporate infrastructure to support 25 pharmacies with minimal additional cost
  62. 62. Goal is 25 pharmacies in five years</li></li></ul><li>IMPORTANT DISCLOSURES<br />Safe Harbor Statement<br />This document and other written or oral statements made from time to time may contain forward-looking statement s covered by the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like “expects,” “assumes,” “projects,” ”anticipates,” “estimates,” “we believe,” “target,” “could be,” and other words of similar meaning, are forward-looking statements. Theses statements are based on managements’ expectations and assumptions and are subject to risks and uncertainties that may cause actual results by the forward-looking statements include: lack of sufficient financing for opening new pharmacies, government regulation and controls, and inability to manage growth. Additional information concerning factors that could cause actual results to differ materially from those projected is contained in the Company’s filing with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update forward-looking statements as a result of new information since these statements may no longer be accurate or timely.<br />Use of Material Contained Herein<br />This presentation and the information contained herein are confidential. By your receipt of a copy of this presentation (or your attendance in person), in order to comply with Regulation FD, you agree to hold in strict confidence the existence and contents of this presentation, including without limitation the potential offering.<br />This document is intended for informational purposes to obtain indications of interest only and is not intended, no should it be construed, as a recommendation, investment advice, an offer to sell or buy, as solicitation, or an endorsement by Assured Pharmacy or any of their employees or agents. <br />

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