Health 2.0 Presented by: Lalit Dhadphale  Chairman, President & CEO July 2010
Our Mission Build the largest online health portal by delivering consumers affordable drugs and pharmacy products, the best health content and cutting edge web-based health management tools.
HealthWarehouse.com Founded: August 2007 Headquarters: Cincinnati, Ohio Stock Symbol: HEWA Employees: 25 Licenses: 50 States Certifications: DEA, VIPPS Awards: BizRate
Our Management Team Lalit Dhadphale – President & CEO Co-Founder HealthWarehouse.com (OTC: HEWA) Co-Founder Zengine, Inc. (NASDAQ: ZNGN) Co-Founder Excite Japan (JASDAQ: 3754) Ron Ferguson Rph – Chief Pharmacist 25 Years Retail Pharmacy Experience Licensed Pharmacist in 50 States Ohio State Board of Pharmacy Liason Pat Delaney – Chief Financial Officer Clacendix (OTC: IONN) Pointe Communications Advanced Telecommunications
Costly Inconvenient Unpleasant Buying Medications Today
Retail Pharmacies Expensive brick-and-mortar Artificial “fill times” 90-day prescriptions Lack of privacy Poor customer service Current Landscape Pharmacy Benefits Managers Members only Complicated pricing structure Limited cost savings Lengthy delivery times Poor customer service Rogue Internet Pharmacies Unsafe Violate patent laws Illegally issue prescriptions Lengthy delivery times Poor customer service Drugstore.com Focus shifted to OTC & Beauty Shrinking prescription volume Little cost savings over retail
Current Landscape Retail Mail-Order Prescriptions OTC
Current Landscape *June 2010 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% Safeway $  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 $  1,600,000  * 100% 99% 1% 95% 100%
Customer Acquisition Direct - Internet Marketing directly to consumers VIPPS required to buy on Google, Bing & Yahoo Social Media: Facebook, Twitter, Foursquare Indirect – Partnerships Insurance Companies Atlantis Health Plan Primary Care Clinic Systems AMG Medical, PrimaryCareOne, MyGeorgia Doctor, Columbia Medical Associates, Qliance Employers Huntington Insurance
Elderly Medicare “Donut Hole” Uninsured / Under-Insured Inconvenient Chronic Conditions Younger Generation Typical Customers
Simplifying The Channel Cost paid by Consumer,  Employer, Insurance Current Supply Chain HealthWarehouse Model Savings to Consumer,  Employer, Insurance Consumer Wholesaler Distributor Pharmacy Manufacturer $ $$ $$$ $$$$ Manufacturer Consumer $
Cost Savings March 2010 – Company data on South Florida 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
Convenience Cincinnati, OH 80% of US population reached in 2 days
Customer Service
Pharmacy Refill Manager
Health Content Partner with leading content providers Create advertising and cross-sell opportunities Drive organic traffic via search engines Currently more ad dollars available than advertising opportunities in healthcare
Health Content
Health Community
Health Community Utilize power of Web 2.0 technologies to build community and discussions Create advertising and cross-sell opportunities Drive organic traffic via search engines Add value to the user experience beyond purchasing and build trust
Online Health Management Tools Extend length of visit time by providing health monitoring tools Mobile Apps to further extend reach beyond desktop Tie online software to HW branded blood glucose meter and test strips Further build trust with users
Online Health Management Tools
Technology Hosted on Amazon EC2 platform  Linux, Apache, MySQL, PHP stack Utilizes YUI (Yahoo JavaScript Library) Web 2.0 technologies include: AJAX, JavaScript, JSON, RSS, XML, SOAP 100% Open Source
Current Opportunities Disruptive business model Eliminate inefficiencies in supply chain Drug price transparency $40 billion brands off patent next 2 years Focus on generics Bring consumers affordable medications Low overhead Fast shipping Award-winning customer service
Growth Initiatives Further enhance our portal to attract advertisers and sponsors Increase traffic: Content - Similar to WebMD Community - Web 2.0, Facebook, Twitter Search Engines – Google & Bing allow only VIPPS  Increase stickiness: Monitoring – Online Health Management Mobile – Interfaces for iPhone, Android Pursue Strategic Acquisitions OTC players (revenues/customers) Convert OTC customers to Rx Health 2.0 tools and sites
Annual Financial Results 2008 2009 % Growth Revenues $1,270,527 $3,589,391 +183% Gross Profits 299,900 901,987 +201% Gross Margins 23.60% 25.13% Net Income ($667,301) ($2,439,502) n.m.
Quarterly Financial Results 1Q 2009 1Q 2010 % Growth Revenues $668,116 $1,235,514 +85% Gross Profits 152,425 628,099 +312% Gross Margins 22.81% 50.84% Net Income ($442,042) ($318,906) n.m.
Key Annual Statistics 2008 2009 % Growth Orders 22,951 81,895 +257% Prescriptions 170 17,855 +10,403% Avg. Order Size $55.36 $46.20 -17% Refills 17 4,235 +3,845% Pageviews 1,144,189 4,057,959 +255% Customers 11,704 54,682 +367%
Key Quarterly Statistics 1Q 2009 1Q 2010 % Growth Orders 14,760 15,099 +2% Prescriptions 902 12,397 +1,274% Avg. Order Size $51.23 $81.83 +60% Refills 119 4,694 +3,845% Pageviews 885,211 909,784 +3% Customers 22,336 62,860 +181%
Thank You

Hw july presentation

  • 1.
    Health 2.0 Presentedby: Lalit Dhadphale Chairman, President & CEO July 2010
  • 2.
    Our Mission Buildthe largest online health portal by delivering consumers affordable drugs and pharmacy products, the best health content and cutting edge web-based health management tools.
  • 3.
    HealthWarehouse.com Founded: August2007 Headquarters: Cincinnati, Ohio Stock Symbol: HEWA Employees: 25 Licenses: 50 States Certifications: DEA, VIPPS Awards: BizRate
  • 4.
    Our Management TeamLalit Dhadphale – President & CEO Co-Founder HealthWarehouse.com (OTC: HEWA) Co-Founder Zengine, Inc. (NASDAQ: ZNGN) Co-Founder Excite Japan (JASDAQ: 3754) Ron Ferguson Rph – Chief Pharmacist 25 Years Retail Pharmacy Experience Licensed Pharmacist in 50 States Ohio State Board of Pharmacy Liason Pat Delaney – Chief Financial Officer Clacendix (OTC: IONN) Pointe Communications Advanced Telecommunications
  • 5.
    Costly Inconvenient UnpleasantBuying Medications Today
  • 6.
    Retail Pharmacies Expensivebrick-and-mortar Artificial “fill times” 90-day prescriptions Lack of privacy Poor customer service Current Landscape Pharmacy Benefits Managers Members only Complicated pricing structure Limited cost savings Lengthy delivery times Poor customer service Rogue Internet Pharmacies Unsafe Violate patent laws Illegally issue prescriptions Lengthy delivery times Poor customer service Drugstore.com Focus shifted to OTC & Beauty Shrinking prescription volume Little cost savings over retail
  • 7.
    Current Landscape RetailMail-Order Prescriptions OTC
  • 8.
    Current Landscape *June2010 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% Safeway $ 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 $ 1,600,000 * 100% 99% 1% 95% 100%
  • 9.
    Customer Acquisition Direct- Internet Marketing directly to consumers VIPPS required to buy on Google, Bing & Yahoo Social Media: Facebook, Twitter, Foursquare Indirect – Partnerships Insurance Companies Atlantis Health Plan Primary Care Clinic Systems AMG Medical, PrimaryCareOne, MyGeorgia Doctor, Columbia Medical Associates, Qliance Employers Huntington Insurance
  • 10.
    Elderly Medicare “DonutHole” Uninsured / Under-Insured Inconvenient Chronic Conditions Younger Generation Typical Customers
  • 11.
    Simplifying The ChannelCost paid by Consumer, Employer, Insurance Current Supply Chain HealthWarehouse Model Savings to Consumer, Employer, Insurance Consumer Wholesaler Distributor Pharmacy Manufacturer $ $$ $$$ $$$$ Manufacturer Consumer $
  • 12.
    Cost Savings March2010 – Company data on South Florida 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
  • 13.
    Convenience Cincinnati, OH80% of US population reached in 2 days
  • 14.
  • 15.
  • 16.
    Health Content Partnerwith leading content providers Create advertising and cross-sell opportunities Drive organic traffic via search engines Currently more ad dollars available than advertising opportunities in healthcare
  • 17.
  • 18.
  • 19.
    Health Community Utilizepower of Web 2.0 technologies to build community and discussions Create advertising and cross-sell opportunities Drive organic traffic via search engines Add value to the user experience beyond purchasing and build trust
  • 20.
    Online Health ManagementTools Extend length of visit time by providing health monitoring tools Mobile Apps to further extend reach beyond desktop Tie online software to HW branded blood glucose meter and test strips Further build trust with users
  • 21.
  • 22.
    Technology Hosted onAmazon EC2 platform Linux, Apache, MySQL, PHP stack Utilizes YUI (Yahoo JavaScript Library) Web 2.0 technologies include: AJAX, JavaScript, JSON, RSS, XML, SOAP 100% Open Source
  • 23.
    Current Opportunities Disruptivebusiness model Eliminate inefficiencies in supply chain Drug price transparency $40 billion brands off patent next 2 years Focus on generics Bring consumers affordable medications Low overhead Fast shipping Award-winning customer service
  • 24.
    Growth Initiatives Furtherenhance our portal to attract advertisers and sponsors Increase traffic: Content - Similar to WebMD Community - Web 2.0, Facebook, Twitter Search Engines – Google & Bing allow only VIPPS Increase stickiness: Monitoring – Online Health Management Mobile – Interfaces for iPhone, Android Pursue Strategic Acquisitions OTC players (revenues/customers) Convert OTC customers to Rx Health 2.0 tools and sites
  • 25.
    Annual Financial Results2008 2009 % Growth Revenues $1,270,527 $3,589,391 +183% Gross Profits 299,900 901,987 +201% Gross Margins 23.60% 25.13% Net Income ($667,301) ($2,439,502) n.m.
  • 26.
    Quarterly Financial Results1Q 2009 1Q 2010 % Growth Revenues $668,116 $1,235,514 +85% Gross Profits 152,425 628,099 +312% Gross Margins 22.81% 50.84% Net Income ($442,042) ($318,906) n.m.
  • 27.
    Key Annual Statistics2008 2009 % Growth Orders 22,951 81,895 +257% Prescriptions 170 17,855 +10,403% Avg. Order Size $55.36 $46.20 -17% Refills 17 4,235 +3,845% Pageviews 1,144,189 4,057,959 +255% Customers 11,704 54,682 +367%
  • 28.
    Key Quarterly Statistics1Q 2009 1Q 2010 % Growth Orders 14,760 15,099 +2% Prescriptions 902 12,397 +1,274% Avg. Order Size $51.23 $81.83 +60% Refills 119 4,694 +3,845% Pageviews 885,211 909,784 +3% Customers 22,336 62,860 +181%
  • 29.