Industry benefits

Rexanto’s SaaS platform technology streamlines operating costs for the pharmacy industry; and advances pharmacists’ roles as caregivers in the healthcare continuum. With our innovations, pharmacies improve EBITDA by 150% to 250% without any capital costs. Manufacturers reduce distribution costs and Medicare spends less on prescription meds. Most importantly Rexanto technology results in life-saving and life-enhancing medication models for seniors.

When prescriptions change, any remaining meds from the original prescription are discarded. For “HiNeeds” seniors the frequencies of prescription changes are so high that $4-$6B of meds are wasted every year with standard 30 day supplies. So much so, that Sec. 3310 of Healthcare Reform specifically targets “reducing waste associated with 30 day fills” and mandates the use of weekly or shorter dispensing in long-term care facilities. CMS expects savings of $6-$9B over an eight year period, even after payments for any additional service charges.

Pharmacies will be expected to implement “short cycle fills” and drug plan sponsors will be expected to reimburse added service fees for plan years starting Jan 1, 2012. Pharmacies already struggle with tight operating margins and cannot address the mandate without investing in automation. Rexanto offers pharmacies a solution to the CMS mandate with zero capital investment. Our solution doubles pharmacy EBITDA even with current 30 day models and can be implemented to great benefit well in advance of the mandate deadline.

Meds today are manually dispensed in 30 or 90 day bottles. Excess costs in the existing supply chain addressable by Rexanto derive from 3 major cost drivers:

• $3.6B annually in manual dispense costs at pharmacies ($9.62 - $10.53 per Rx)
• $3-$6B annual supply chain costs of dispensing drugs from intermediate bottles and smaller inventory sizes, and
• $4-$6B of annual waste from discarded meds from 30 day bottles (even greater with 90 day bottles)

Rexanto’s technology platform transitions the industry to automated dispensing of 7Day (or 30Day) Blister Packs. The new model is safer for seniors and creates hard cost savings across the prescription drug supply chain. Beneficiaries include consumers, pharmacies, nursing-homes, Medicare and manufacturers. For example:

• Long Term Care Pharmacies: Already offer meds in 30Day blister packs. After Rexanto’s fees, LTC pharmacies improve EBITDA for current 30Day operations by 150 to 250%. Additionally, they address the mandate for short-cycle fills without capital investments.
• Retail Pharmacies: With Rexanto’s 7Day packs, retail pharmacies recapture business lost to mail-order-pharmacies; and reduce COGs and dispense costs
• Seniors: With Rexanto, seniors get 7Day meds at mail order prices and halve their out-of-pocket costs. Fully labeled 7DayPacks are a better alternative to “repacking” meds into weekly pill minders and improve adherence to med regimens.