1. MedBox, LLC
Business Plan
MedBox, LLC
1561 Carman Valley Drive
Manchester, MO 63021
314-369-2988
David@MedBox.com
www.MedBox.com

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. 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. 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. 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. 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. The Delivery Model

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. 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. 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. 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