Investors

Medicare population

• Medicare population is both growing and aging
• 85+ year old population has grown grown from 6.2% (1.2M) in 1966 to 13.2% (4.7M) in 2005
• Medicare population is living longer
• Baby boomer inflexion has started
• Reversal in decline of %of population that are 65-69 started from 2003

US RxMed spend

• United States spent $287B on prescription medicines in 2007
• 64% of this is spent on population aged 55+
• Rexanto's solution is applicable for 18M seniors who accounted for $76B RxMed spend in 2007

Target customers: pharmacies that serve "HiNeeds" seniors

• 61% of US meds are purchased through LTC pharmacies or retail stores
• Automated mail order is $45.1B segment well suited for maintenance meds (ie 90Day supplies)
• Automated B2B is well suited for high volume, highly variable meds (ie 7Day supplies)
• Rexanto automated B2B (production outsourcing) is applicable for $42B segment
• Rexanto targets $20B RxMed-spend sold to HiNeeds senior through LTC & independent retail pharmacies

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