A Better Way To Serve Digital Health

Transcription

1 INTRODUCING A Better Way To Serve Digital Health Corporate Presentation June 2017

2 Important Cautions Regarding Forward Looking Statements This presentation contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forwardlooking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are set forth in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission and available on our website at optimizerx.com or the SEC site at sec.gov. Copyright 2017 OptimizeRx Corporation. All Rights Reserved

3 Who We Are OptimizeRx is a Digital Health Company, delivering marketing services with proven ROI for the pharmaceutical industry Our exclusive partnerships with electronic health and e-prescription providers creates a unique channel between pharma companies and healthcare professionals (HCPs) HCPs can offer patients electronic vouchers and copay coupons within their eprescribing process, thereby replacing traditional (and costly) drug samples Services delivered across the largest point-ofprescribe promotional network: 370+ electronic health record (EHR) partners reaching 500K+ HCPs 3

4 Our Value Proposition Large Market Opportunity over 2 billion erx transactions annually Major Benefits to all Stakeholders delivering highvalue support to healthcare workflow while reducing costs and improving outcomes Proven proprietary technology implemented in largest promotional erx network infinitely scalable for expanding market & overcoming barriers Low-cost, fixed overhead model offers highlyleverageable financial opportunity - technology & support is in place to scale business rapidly World-leading customers & partners helping us grow World-Leading Customers & Partners 4

5 We Deliver Digital Health Marketing in Three Key Areas for Pharma FINANCIAL SUPPORT Financial Messaging (ecoupons) BRAND MESSAGING Clinical messages Competitive messages New formulation announcements BRAND SUPPORT Launch tactics Drug File Integration Salesforce Training 5

6 OptimizeRx Efficiently Supports & Benefits Key Stakeholders PHARMA DOCTORS EHR/EMRS PATIENTS PHARMACISTS Promotional access to prescribers & patients at the point of prescribe. Information regarding drugs & the financial assistance available to patients allowing doctors to choose their preferred drug while maintaining adherence. Incremental revenue & value via seamless integration of content delivery platform. Overall lower cost of prescriptions, improving adherence & outcomes. Allows for improved patient experience and outcomes. 6

7 Why Does Pharma Need to Move their Resources into the EHR? EHRs are THE Digital Platform Where Doctors live EHR is the Most Used Digital Resource EHRs are becoming THE digital platform where doctors live 87 % Office-based physicians using an EHR in % Now eprescribing Rep Access to HCPs Continues to Decline 47% of physicians are only 20 % EHRs accessible are to becoming sales reps THE digital get platform to actually where doctors live speak to the doctor! 1.5 Billion Amount pharmaceutical companies waste annually on infeasible calls minutes EHRs are becoming THE digital per platform patient day spent using where EHR, more doctors live visit is spent on the EHR Average number of hours per than double all other digital resources combined HCPs See the Value of Pharma Services in the EHR Strong demand for pharmasponsored patient-related activities on EHRs EHRs are becoming THE digital platform 56 % 33 where doctors live % U.S. physicians who report interest in any content provided by pharma on an EHR Influence of pharma-ehr resources on prescribing decisions* U.S. physicians who report that EHR resources are very or somewhat influential Sources: ONC, US Department of Health and Human Services ; CMI Compass Research Study, Access Monitor, Manhattan Research. 7

8 Market Driver: Government Mandating Transition from Hand-Written to Electronic Prescriptions % Hand-Written 50% eprescribed 4 Billion Prescriptions Annually Majority of 2 billion hand written prescriptions to become eprescriptions due to further government mandates Prescription data based on SureScripts Report Assumptions are for market estimates only and do not imply any projections or expected performance. 8

9 OptimizeRx is the Leading Aggregator in the Fragmented EHR Market EHRs/E-Prescribe Platforms Aggregator Reach 70% Top 20 EHRs have more than 70% share ~500 EHRs 500,000 Healthcare Professionals 12% but no EHR has more than 12% of the market PDR 100s of others 9

10 OptimizeRx Targets Pharma s Most Valued Offering to Doctors: Drug Savings Vouchers & Co-Pay Coupons Providers Who Value Vouchers or Coupons as Important Cardiologists 82% Endocrinology/Diabetology 82% General Practice & Family Practice 85% 71% HCPs Want to Know About Discount Programs Internal Medicine 80% Neurology 73% Oncology 74% Pediatrics 82% Psychiatry 75% Urology 83% Source: CMI Compass

11 Workflow Overview Step 1: Search HCP searches for a brand within EHR and is alerted of potential savings availability for patient. Step 2: Selection Step 3: Print or Text 11

12 Workflow Overview Step 1: Search Step 2: Selection Step 3: Print or Text After Brand Selection, OptimizeRx Instantly Returns Eligible Patient Support to Review & Auto-send to Pharmacy 12

13 Workflow Overview Step 1: Search Step 2: Selection Step 3: Print or Text Full Savings Offer is Also Available to Print & Give to Patient We can also text & patients. Currently working with EHRs to integrate into patient s portal. 13

14 Financial Messaging (ecoupon) Programs Deliver Cost-effective Patient Support and Impact Independent Studies Demonstrate Effectiveness of OptimizeRx ecoupons.* Therapeutic Area Views/Month ROI Men s Health 1, :1 Depression 32, :1 Bone 3, :1 Diabetics 7, :1 ADHD 6, :1 Smoking Cessation 3, :1 Ophthalmology 12, :1 Hematology 8, :1 Multiple ROI studies confirm that the OptimizeRx platform grows total prescriptions through its unique communication strategy. In fact, leading pharma manufacturers have experienced results ranging from 300% to 1,200% proving ecouponing is one of the most effective digital strategies available. *Studies conducted by third party analytics: Cognizant and Ogilvy Analytics 2015, 2016 on behalf of Top 5 global pharma companies. 14

15 Our Technology Integrated into 370+ Electronic Health Record (EHR) Providers & Growing August 2015: OptimizeRx & Allscripts expanded its exclusive partnership to automate voucher and copay savings support within Allscripts Touchworks EHR platform. Some of the largest health systems in the country use Touchworks EHR enabling OptimizeRx to reach 45,000+ new prescribers by the end of October 2016: Acquired all of Allscripts LogRx (messaging within EHR) inventory for the remainder of 2016 and 2017, making OptimizeRx their exclusive partner and allowing us to sell our messaging solution Largest point of prescribe network: 370+ EHRs, with 200+ EHRs exclusive to OptimizeRx, including Allscripts = high barriers to entry 15

16 Expanding Our EHR Partner Network to Achieve Even Greater Prescriber Reach EHR Target Pipeline # of HCPs Specialty Concentration Amazing Charts 10,500 Multispecialty CareCloud 5,000 Multispecialty ModMed 11,000 Derm/Opth/ENT GMed 3,800 Gastro Intrinsiq 8,500 Urology / Oncology EyeMD 1,500 Ophthalmology Greenway 40,000 Multispecialty CureMD 10,000 Multispecialty Aprima 8,000 Multispecialty DrChrono 5,000 Multispecialty isalus 1,500 Ophthalmology EMD's 30,000 Multispecialty HeathFusion 1,300 Oncology Greenway 40,000 Multispecialty Office Ally TBD Multispecialty Advanced MD 30,000 Multispecialty eclinical Works 55,000 Multispecialty Pulse Complete 4,000 Multispecialty Total 265,100 16

17 Opportunity to Expand Our eprescriber Reach & Add Brands Reach: 500,000 HCPs Over 1 Million U.S. HCPs e-coupons delivered, 100 brands 800+ Brands With Copay Programs* Opportunity to Double eprescriber Reach Opportunity to Add 700+ Brands rand data from OptimizeRx and Industry reports. ssumptions are for market estimates only and do not imply any projections or expected performance. *In Q

18 Our Addressable Market Opportunity OptimizeRx has the potential to deliver 200 million transactions annually for brands with copay savings program Assuming we maintain volume pricing average of $4 per automated transaction, that equates to total market potential: $800 million annually Brands with copay savings program - 10% Brands without copay savings program - 5% Generics - 85% Volume of eprescriptions 1.7B 100M 200M 2 Billion eprescriptions Annually Prescription data based on SureScripts Report Assumptions are for market estimates only and do not imply any projections or expected performance. 18

19 How We Generate Revenue SampleMD Standard Pricing Metrics Set Up Fee (Install disruptive technology) $25K Reporting $2K per month Cost Per Coupon Distribution (regardless if redeemed) $5.00 per coupon NOTE: We do have Enterprise Wide discounts to incentivize Manufacturers to add portfolio of products to drive increased volume. 19

20 Strategic Investment by WPP Largest Marketing Services Firm in the World WPP acquired 20%+ of OptimizeRx for $4.7M 1 Lynn Vos, CEO of WPP subsidiary, Grey Healthcare Group, joined OptimizeRx's board of directors WPP now leveraging its large network of pharmaceutical clients to help OptimizeRx acquire more brands Co-developing new platforms to deliver vital information to HCPs & patients, and help expand the EHR network WPP is the world s largest marketing services company: 3,000 offices & 170,000 associates These new tools will help pharma better support physicians with the information they need, when they need it, through the channel they access most. This will transform the physician-pharmaceutical relationship and positively impact people s lives. -Lynn O Connor Vos, CEO of Grey Healthcare Group/WPP 1) Position date as of Sept. 29,

21 Rx ecoupon Market Opportunity Market Penetration OptimizeRx ecoupon vs. Traditional Rx Coupon Promotion OptimizeRx's Estimated Market Penetration: 1% (~1.5M Units) OptimizeRx's Market Penetration Scenario: 5% (7.5M Units) 5% Market Share Potential Scenario (in millions) Revenue $30M Gross margin $17M ~140 Million Rx ecoupon Market ~140 Million Rx ecoupon Market SG&A Net Income (pre-tax) $10.5M $6.5M Each market share point acquired is worth ~$6M 1 As revenue grows, highly leveraged, low fixed costs generate profit 1) Based on $4 per transaction. 21

22 Q Financial Highlights Net revenue: Q1: up 22% to a record $2.2M Gross profit: Q1: $0.7M or 36% of net revenue Cash & cash equivalents: $6.7M at Mar. 31, 2017 Debt: Continue to operate debt-free Growth in Brands, Channel Partners and HCPs on OptimizeRx EHR Network 200K K K Total Health Care Professionals Pharma Brands EHR Channel Partners 22

23 Key Stats (OTCQB: OPRX) Stock Price (5/18/2017) $ Week Low-High $0.63-$1.20 Avg. Daily Vol. (30 day) 35,919 Shares Outstanding 29.7M Public Float, est. 61% Insider Holdings 1 ~32% Strategic Ownership 1 ~20% Institutional Holdings ~14% Net Revenue (ttm) Net Loss (ttm) Accounts Receivable (mrq) Cash (mrq) Total Assets (mrq) Total Debt (mrq) Total Liabilities (mrq) $8.1M $2.1M $2.8M $6.7M $10.9M $0.0M $3.9M Market Cap $21.4M Price/Sales (ttm) 2.6x Price/Book (mrq) 3.6x Fiscal Year End Dec. 31 Employees (@ January 24, 2017) 21 Data source: Yahoo!Finance and OTC Markets 1) Strategic Ownership = WPP (LSE:WPP); Insider Holdings also includes WPP (ttm) trailing twelve months as of March 31, 2017 (mrq) most recent quarter as of March 31,

24 Growth Drivers Product Innovation Moving beyond our automated savings to automating other patient & HCP content Grow Pharma Brands, Programs & Budgets Expand HCP & Patient Utilization in New Platforms Grow HCP Utilization in Current EHR Network Focused on enterprise pricing with proven ROI + leveraging WPP agencies management of hundreds of brands Exclusively partner with EHRs and erx companies. Expand into hospital systems & pharmacies. Commitments from expansion of existing platforms expected to increase promotional reach by at least 25% over next 12 months 24

25 Key Takeaways Huge Market 2 Billion erx transactional opportunities and point-of-care marketing spend increasing Proven proprietary technology implemented into industry s largest promotional erx network infinitely scalable for expanding market Growth in Total HCPs Reached with OptimizeRx EHR Network 500K Low fixed overhead model that offers highlyleverageable/scalable financial opportunity World-leading customers & EHR partners Accelerating growth: revenue up 7% in FY16, up 13% in Q K 250K

26 Contact Us William Febbo, CEO Doug Baker, CFO x807 Headquarters: 400 Water Street STE 200 Rochester, MI Investor Relations: Ron Both, CMA

27 Appendix

28 Senior Management Will Febbo CEO Doug Baker CFO Brian Dillon SVP Product & Strategy Terry Hamilton SVP Sales Ed Berger SVP Marketing 17+ years experience leading health services and technology companies: CEO and co-founder of MedPanel (acquired by MCF Corporation). After acquisition, Febbo served as COO of Merriman Capital banking division and CEO of Digital Capital Network (DCN). Led the launch of DCN, a technology solution that increases transparency, compliance and efficiency for stakeholders. Founder of Plexuus B.A. in International Studies from Dickinson College in Pennsylvania. 21+ years of senior financial experience. For 18 years, served as CFO of Applied Nanotech Holdings, Inc., a public company specializing in nanotechnology research and development. Deep experience consulting the HiTECH and pharmaceutical manufacturers services sector: Partner at AccelaPartners. Regional VP of Americas at Cegedim. President and CEO, Intercon Systems. Founder, president and CEO of Kelly Waldron (acquired by McKessonHBOC Technology Solutions). VP of sales, Walsh America. Founded QuadROM Software Systems (NA division absorbed into Walsh America). 19+ years working in the pharmaceutical and biotech arenas in management, and leadership positions in sales, marketing and managed markets. 30 years of successful, in-depth pharmaceutical brand marketing experience working both on the client and agency services side of the business: Senior marketing roles at Stuart Pharmaceuticals, ICI Pharma and AstraZeneca Pharmaceuticals. Global marketing director of AstraZeneca s Pain, Anesthesia, and Infection Therapy Area, responsible for therapy area strategy and new product development. 28