Canada’s On-Demand Virtual Pharmacy
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Canada’s On-Demand Virtual Pharmacy
Q 2 2 0 2 0 | C O N F I D E N T I A LCanada’s On-Demand Virtual Pharmacy
TSXV: MNOW
Investor Presentation
Q2 2021
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Canada’s On-Demand Virtual Pharmacy
Notice And Disclaimer
General
Unless otherwise indicated or the context otherwise requires, all references in this presentation to “Mednow”, “Mednow.ca”, the “Company,” “we,” “our,” “ours,” “us” or similar terms refer to Mednow Inc., together with its subsidiaries. All references to “$”, “C$”, “dollars” are to Canadian dollars. All references to “US$” are to United States dollars. Capitalized terms used herein that are not otherwise defined have the meanings ascribed to such terms in the final long form prospectus of Mednow dated February 26, 2021 (the “Prospectus”) available on SEDAR under Mednow’s profile at www.sedar.com.
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Cautionary Note Regarding Forward-Looking Information
This presentation contains “forward-looking information” for purposes of applicable Canadian securities laws (“forward-looking statements”). Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations or assumptions regarding the future of our business, future plans and strategies, our operational results and other future conditions. Forward-looking statements can be identified by words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “seek”, “target”, “potential”, “will”, “would”, “could”, “should”, “continue”, “contemplate” and other similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts, and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our financial performance, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. Although we base the forward-looking statements contained in this presentation on assumptions that we believe are reasonable, we caution you that actual results and developments (including our financial performance, financial condition and liquidity, and the development of the industry in which we operate) may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. Despite a careful process to prepare and review the forward-looking statements, there can be no assurance that the underlying opinions, estimates, and assumptions will prove to be correct.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those described in greater detail under “Risk Factors” in the Prospectus. If any of these risks materialize, or if any of the above assumptions underlying forward-looking statements prove incorrect, actual results and developments may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement that we make in this presentation speaks only as of the date of this presentation, and, except as required by law, we undertake no obligation to update any forward-looking statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
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This presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities of Mednow in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities of Mednow have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. persons," as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY, INCLUDING THE MERITS AND RISKS INVOLVED. THE SECURITIES OF THE COMPANY HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR BY ANY STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED ON THE ACCURACY OR ADEQUACY OF THIS PRESENTATION. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Readers should be aware that the acquisition, holding or disposition of the securities of Mednow may have tax consequences both in Canada and the United States. The tax consequences of the acquisition, holding or disposition of such securities for investors who are resident in, or citizens of, the United States are not described herein. Consequently, any prospective investor is advised to consult their own tax advisors regarding the application of federal income tax laws to their particular circumstances, as well as any state, provincial, local, foreign and other tax consequences of investing in the securities of Mednow and acquiring, holding or disposing of such securities. Investing in the securities of Mednow involves risks. An investment in the securities is suitable only for investors who fully understand, and are capable of bearing, the risks of such investment. Prospective investors should review and consider carefully the information available on Mednow’s profile at www.sedar.com, including the “Risk Factors” described in the Prospectus.
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Canada’s On-Demand Virtual Pharmacy
Mednow:
All Your Pharmacy Needs Delivered
To provide patient access
via a user-friendly app,
website, and call centre
To have national
pharmacy offering
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To provide access to virtual
healthcare professionals
To deliver best-in-class
pharmacy services from
experienced founders
3
Canada’s On-Demand Virtual Pharmacy
Mednow aims to become a household name by improving healthcare access through
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Canada’s On-Demand Virtual Pharmacy
Patients see their community
pharmacists up to
10x
more frequently than they
see family physicians
1
2/3
of Canadians over the age of 65 take
more than 3 medications a day
2
of Canadians with chronic illness do
not take medications as prescribed
2
50%
4
1. Canadian Pharmacists Association, 2020
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Canada’s On-Demand Virtual Pharmacy
1. CIHI National Health Expenditure, 2019 2. IBISWorld, Pharmacies & Drug Stores in Canada, 2020
3. Fortune Business Insights, Telehealth Market Size, Share & COVID-19 Impact Analysis […], 2020; Canadian figures estimated from North American market 4. Frost & Sullivan, Telehealth to Experience Massive Growth with COVID-19 Pandemic […], 2020
$264 Billion
Healthcare
Market
1
$47 Billion
Pharmacy
Market
2
A Large Addressable & Untapped Market
●
Despite a Canadian landscape with over 10,500 pharmacies,
management has identified less than 10 pharmacies that are an
online delivery-based business model
●
Telemedicine is expected to grow by 64% year over year with a
38% CAGR from 2020-2025
4
and management believes as more
people consult their doctor online, more people will require
pharmaceutical consultations and medication delivery
●
Mednow seeks to affect disruption in the healthcare
market as the sectors of grocery, restaurant, and
transportation have experienced from on-demand
technology-powered companies
5
$2 Billion
Telemedicine
Market
3
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Key Busines Goal: Adherence Leads to Loyalty
Mednow’s PillSmart
TM
system helps improve medication adherence by organizing medications and vitamins
by date and time in easy-to-use pouches at no additional cost to customers
1
1.
Trademark Pending. Similar to PillPack (USA) and PocketPills (Canada)
2.
Based on internal company calculations
$5,000
Lifetime Value
(LTV)
2Customer
Acquisition Cost
(CAC) target
Average annual revenue per customer of $1,500
over an estimated lifetime of 10 years with 33%
gross margins
2
$100-$200
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Canada’s On-Demand Virtual Pharmacy
Diagnosis to Delivery: Mednow Virtual Care
Patient requests a Doctor
Appointment Through
Mednow’s App
Patient Meets with
Virtual Doctor
Script Filled and Delivered
Same Day by Mednow
Pharmacy
#1
#2
#3
7
•
Partnered with proven operators to scale quickly
•
A telemedicine offering combined with a digital pharmacy
•
Capturing physician services revenue
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Canada’s On-Demand Virtual Pharmacy
Patient
Mednow
Virtual Care
Pharmacy
Mednow
Complementary
Medical Technology
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Goal is to be a Full Spectrum Digital Healthcare Provider
Same Day Delivery Infrastructure via
acquisition of more fulfillment sites
nation wide
Adjacent Health
Services
Acquisition Targets
In House Capability
Holistic Digital
Experience
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Canada’s On-Demand Virtual Pharmacy
Key Accomplished Milestones
Accelerated development to service the rapid adoption of digital healthcare in Canada
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1. Mednow East Inc. and Mednow Pharmacy Inc. are fulfillment partners
June 2020
$6.5M Raised in
Oversubscribed
Series A Round
Web App
and Marketing
Site Released
September 2020
Entered into Strategic
Agreements to Establish
Mednow Telemedicine
November 2020
Established Ontario
(ON) and British
Columbia (BC)
Fulfillment Centers
1.
Same Day Delivery
Capability Built Out.
December 2020
March 2021
IPO’d on TSXV under ticker
symbol MNOW.
Raised $37M in IPO financing.
Since IPO
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Canada’s On-Demand Virtual Pharmacy
•
Developed and began executing on Mednow’s product road map
•
Transition to an in-house technology team to control pace and quality of product
• Investments in cyber security and privacy
Technology
•
Manitoba pharmacy license application
• Atlantic Canada, Quebec and Alberta are currently being targeted as next fulfillment locations
• Forging ahead to establish a national pharmacy at a rapid pace
National Pharmacy Footprint
•
Made key hires notably a Chief Growth Officer as well as team build out in finance, operations and
pharmacy
•
IR activities to educate retail investors through BTV and Native Ads
•
NCIB and market maker to support stock
Corporate Development
Since the IPO
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Canada’s On-Demand Virtual Pharmacy
Anticipated Go-To-Market Strategy
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Q1 2021
Q2 2021
1
Q3 2021
1
Q4 2021
1
Fully capitalize
the company and
IPO
Launch telemedicine
service offering
National pharmacy
footprint
Establish National
business to business
clients
Mednow has a strong customer acquisition plan for 2021 as the company scales nationally
1. This represents Mednow’s targeted growth objectives; however, there is no guarantee that they will be achieved
within the time frames presented, or at all.
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Canada’s On-Demand Virtual Pharmacy
Targeting a National Footprint
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Fulfillment Centres Being Built
Operational Fulfillment Centres
Targeted Fulfillment Centres
•
Same-day delivery service in
Greater Toronto
and
Greater Vancouver
accessible to
8.5 million Canadians
today
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Canada’s On-Demand Virtual Pharmacy
National coverage permits B2B opportunities
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Business-to-Business and Business-to-Doctors
offering can lead to rapid step-wise growth to
user base
Q2 2021
ON and BC
Individual patients
Q4 2021
1
National
B2C + B2B
Brokers/Advisors
Marketing Partnerships
Industry Associations
Individual Patients
B2B
Manufacturer Services
B2C/B2D
1. This represents Mednow’s targeted growth objectives; however,
there is no guarantee that they will be achieved within the time
frames presented, or at all.
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Founders
Karim Nassar,
CEO & Co-Founder
Ali Reyhany,
Director & Co-Founder
Felipe Campusano,
Director & Co-Founder
•
Computer engineer with 15 years of experience in pharmacy, technology, and healthcare logistics
•
Built and managed Air Liquide’s (EPA: AL) Western Canada home oxygen logistics network after assuming various roles
in finance, M&A, strategy, and marketing in France and Canada.
•
Led retail & specialty pharmacy strategy initiatives at McKesson (NYSE: MCK) and Innomar Strategies, a subsidiary of
AmerisourceBergen (NYSE: ABC)
•
Vice President of Digital Strategy at the Care Group of Pharmacies.
•
Karim holds a Bachelor’s of Applied Science from the University of Toronto and an MBA from Queen’s University
•
Ali holds a Doctor of Pharmacy degree from the University of Toronto and has over 20 years of experience in
pharmacies, business development, and operations
•
CEO and Co-Founder of the Care Group of Pharmacies, the largest pharmacist controlled independent pharmacy chain
in Canada with over 45 locations and $150M of revenue
•
Recently completed a $30M growth investment by Crédit Mutuel Equity, a €3B private equity fund of Crédit Mutuel
Alliance Fédérale.
•
Named one of Canada’s Top 40 Under 40 for 2020, presented by BNN Bloomberg and the Financial Post
•
Holds a Pharmacy degree from the University of Toronto and a Bachelor’s of Science degree from Queen’s University
•
Purchased first pharmacy the day he graduated pharmacy school
•
Has amassed a pharmacy network of over 50 pharmacies and health care services
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Advisors & Other Directors
Dr. Karim Vellani,
Medical Director
Family physician at St. Michael’s Hospital
Founder and Medical Director of MediCall
Lecturer at the University of Toronto
Chris Fischer,
Medical Managing Partner
Previously Director of Operations for the University of Ottawa
Health Services Director of the Ontario University and College
Health Association since 2006
Ghassan Halazon,
eCommerce Advisor
Founder and CEO of EMERGE Commerce (TSXV: ECOM)
Canada’s Top 40 under 40 honourees for 2020, presented by
BNN Bloomberg and National Post
Sameer Lalji,
Technology Advisor
Chief Product Officer at VerticalScope
Previously CTO at DealTap, Managing Director for Majid Al
Futtaim in the United Arab Emirates, and
Advisor for Quantum Mob and Band of Coders
Kia Besharat,
Director
Senior Managing Director at Gravitas Securities
Director of EMERGE Commerce (TSXV: ECOM)
Investment Industry Association of Canada (IIAC) as a Top
40 Under 40 Award Nominee in 2018.
Mahdi Shams,
Director
Partner at MLT Aikins LLP
Advises clients on corporate governance, continuous
disclosure obligations, director and officer duties and
obligations and general corporate law matters
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Canada’s On-Demand Virtual Pharmacy
Mednow’s USP is Quality Patient Experience
See what our customers are saying, or better yet, try Mednow Pharmacy yourself!
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Canada’s On-Demand Virtual Pharmacy
Investments In Digital Healthcare & Pharmacy
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Vancouver-based
PocketPills is a digital
pharmacy allowing
users to refill
medications, manage,
and order prescriptions
from their mobile
devices and is only
available for
Canadians.
Toronto-based Pillway
is a full-service digital
pharmacy that presorts
medications by dosage
and offers free
at-home delivery every
month. WELL Health
made a C$5M minority
investment in Dec-20.
Vancouver-based WELL
Health is the largest
single chain network of
primary care clinics in
British Columbia and
provides electronic
medical records (EMR)
serving over 2,000
medical clinics and
10,000 physicians.
Manchester, US-based
PillPack is an online
pharmacy that uses
technology to manage
medication and
coordinate refills, while
delivering prescriptions
on a monthly basis.
Toronto-based
Mednow is a
pharmacy in your
pocket offering an
all-in-one patient
experience from
diagnosis
2to delivery.
Toronto-based Well.ca is
a Canadian online
retailer that provides
health, wellness, natural,
baby, and beauty
products. Well.ca
features Canada’s largest
assortment of green and
natural brands.
1. As per S&P Capital IQ on 21-Jan-21; 2. Currently offered through third-party providers.
The information presented above is comprised of "comparables", which is information that compares Mednow to other issuers utilizing various financial metrics. The other issuers in the comparables were included on the basis that they are telemedicine, virtual pharmacy or healthcare companies and are considered to be an appropriate basis for comparison to Mednow because they operate in the same or a similar industry to Mednow. The financial metrics were included on the basis that they represent key performance indicators of public companies. Information about the other issuers in the comparables was obtained from public sources and has not been independently verified by Mednow or the agents. There are many risks associated with relying upon the comparables to make an investment decision, including the risk that the performance of Mednow will not necessarily meet or exceed those of the comparable issuers and there is no guarantee that an investor will achieve a return on investment similar to those issuers. If the information concerning the comparables contains a misrepresentation, an investor in Mednow will not have a remedy under securities legislation.
