From the Seattle "Retail Innovation Summit" in May, 2018. This presentation covers three major upcoming threats to retail pharmacy. Using Game of Thrones analogies, it also discusses how technology can be used to mitigate those threats, or even turn them into an advantage.

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Retail Innovation Summit
Seattle, WA
Jeff LeBrun, Co-founder and CEO | jeff@pillsy.com | @jrlebrun

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Why Are Pharmacies
In Retail?

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Predictable
Foot Traffic

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The War of the Pharmacies
is coming…
Customer Experience and Medication Adherence
are the two key battles

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Pressure on Healthcare Spending
Means Pressure On Pharmacies
70% increase in
federal healthcare
spending over
next 8 years

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The Annual Cost of Non-
Adherence to Medications:
$300 Billion
Annual Cost to U.S. Healthcare System1
Responsible for 30% to 50% of all
treatment failures2
1) Aurel O Iuga and Maura J McGuire. Adherence and health care costs. Risk Manag Healthc Policy. 2014; 7: 35–44.
2) Wroth TH, Pathman DE. Primary medication adherence in a rural population: the role of the patient-physician relationship
and satisfaction with care. J Am Board Fam Med. 2006; 19(5): 478-486.

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The “Triple Threat” to
Retailers With Pharmacies
Value-
Based Care
(Only a threat to low-
performers on adherence)
Narrow
Networks
(Industry Consolidation)
Amazon
(Wants to eat your lunch,
using technology)

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Transition to Value-Based Care
Source: Leavitt Partners
WE ARE HERE
Reimbursements are already being tied to medication adherence

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Consolidation and Vertical Integration
Clinical &
Managed
Care
CVS +
Anthem
Walmart +
Humana
Cigna +
Express Scripts
United
Healthcare
EVERYBODY
ELSE
Transition to narrower networks focused on driving medication adherence
Pharmacies with lower medication adherence
are at increased risk of being shut out of narrow networks

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Forgetfulness is the Biggest Barrier to
Medication Adherence
Source: RxAnte, Walgreens Adherence Presentation

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Habit Formation Theory
(The 3 R’s)

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Caregiver
Interest in
Technology
Source: AARP Caregivers & Technology Report
Family members are interested in using
technology to help manage relatives’ meds

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Wireless Pill Caps + Provider Notifications
Improved Adherence by 60% After Six Months
Source: Reese et al. Automated Reminders and Physician Notification to Promote Immunosuppression Adherence Among Kidney Transplant Recipients: A Randomized Trial. American Journal of Kidney Disease.
100%
20%
10%
0%
0 5 10 15
Weeks
88%
Smart Pill Caps + Remote Provider Monitoring
Control (No Remote Monitoring)
55%
Adherence
20 25
30%
40%
50%
60%
70%
80%
90%
Medication Adherence

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Demo

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We Help People Form Healthy Medication
Habits, Using Behavioral Science

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Meet Cindy
• Has three medications
• Owns a smartphone (like 80% of U.S. adults)
• Primary caregiver for her kids, her husband, and
her aging parents
• Interested in using tech that helps her manage
her manage her family’s health

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Awareness

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Easy Setup
App Guides Patient
To Open Their
Smart Pill Cap
Patient Opens
The Cap
Cap Automatically Pairs,
Data Automatically Syncs

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Automatic
Dose
Tracking

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Cindy’s Scheduled Time
Cap Beeps, LED Blinks
(every 10 minutes)
Local
Notification

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20 Minutes Later
2nd Local
Notification
SMS
Message
Cap Beeps, LED Blinks
(every 10 minutes)

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40 Minutes Later
3rd Local
Notification
2nd SMS
Message
Cap Beeps, LED Blinks
(every 10 minutes)

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60 Minutes Later
Automated
Phone Calls
Caregiver
Notification
Cap Beeps, LED Blinks
(every 10 minutes)

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Pharmacy Analytics & Communication Tools
Communication
Tools
• Two Way Texting
• Click-to-Call
• Chatbots
• Rules-based Interactions
Communication informed based
on data collected by Pillsy
Right person. Right message. Right
time.

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Pharmacists Will Be On The
Front Lines of Healthcare

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Data from Pillsy
enables more
powerful
interactions

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Easier Refills
Refill through
the cap
Refill through
the app
Double-click
to refill
Ask to See
a DEMO

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What Makes Pillsy Different?
• More seamless user experience
(+ works with mobile app)
• Pharmacy Integrations
• Clinical Support Tools
• 1-Year Battery Life
• Lower cost
• Building a platform of devices
The Healthcare System is
Now Primed and Ready

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Who will win
The War of Pharmacies?

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Pillsy Can Be A
Strategic Asset

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Building An
Advantage…
• Modern Consumer Experience
• Medication Adherence Impacts
Health Outcomes
• Customer Loyalty
jeff@pillsy.comREQUEST A SAMPLE

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Thank You!
Jeff LeBrun, Co-Founder and CEO | jeff@pillsy.com | @jrlebrun