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Overview
Smart Rx Systems, Inc. established in 2017 is seeking $10 million of equity to grow its robotic technology business, redefining today’s pharmacy, enabling customers to access pharmacy services at the point of care. The Kiosk will be located at physician offices, clinics, urgent care facilities, hospitals, medical office buildings, and convenient retail locations where customers can fill prescriptions quickly and easily with the ability to speak to a live pharmacist.
Rollout Strategy: The company plans to initially establish two parent pharmacies and sixteen micro pharmacies that are projected to generate positive cash flows by month twenty-three with ~$6 million in EBITDA for year 3 (Note: financial and other information is available to investors upon request. There is no guarantee that the company will be able to achieve these results)
Proven Model: The business plan and rollout is based on the company’s proven business model established in 2017 with pharmacies operating in several locations, generating approximately $8 million during the beta testing period ($1.7MM in 2019 and $3.3MM in 2020 alone)
Competitive Advantage: Performs all functions of finding, counting, labeling without any contamination and digital pharmacist verification. Fulfills these functions on demand more efficiently than a traditional retail pharmacy, and improves patient convenience by dispensing medication at the point of care
Cost Savings: As per management analysis, each combination of a parent pharmacy and 7 micro pharmacies accounts for operational savings as a result of lower space requirement and reduced operating costs of personnel and inventory
Management: Over 25 years of experience leading turnarounds and driving growth for global start-up to Fortune 500 technology and business service organizations
The Opportunity
1
Demand:
The pharmacy market is expected to grow at a CAGR of 6.3% to $861 billion by 2028
2
Motivate Operators:
Additional revenue streams to physicians and retailers
3
Attract and Retain Patients
In the age of consumer driven healthcare, provides a competitive edge for operators to attract and retain customers
Key Investment Highlights
Proven Model: The Kiosk has been operational in several locations for over three years – the technology works, is compliant, and saves time and money
Pharmacy of the Future: Disruptive technology that is entirely automated delivering a new robotic system at the point of care with higher accuracy, lower startup and operating cost
Locations: Previously six locations in Texas and Florida
Strategic Partnership: Partnered with a global automated pharmacy robotics manufacturer that provides 24/7 installations and maintenance with the capability to manufacture 40 kiosks monthly
Growth Strategy
More Pharmacies at a Lower Cost: Install up to seven micro pharmacies for each parent pharmacy. Management confirms that micro pharmacies can be opened for about 30% to 40% of the cost and has lower operating cost compared to a parent pharmacy
Short-Term Growth: Implement 2 parent pharmacies and 16 micro pharmacies within the first two years. Company is expected to be cash positive by month 23 of operations
Long-Term Growth: Ramp up to 1,000 locations, domestically and internationally with the ability to customize compounds as prescribed by physicians
E-commerce: Establish a website to sell minor related durable goods and over the counter medicines to increase revenues and increase customer base
Virtual Consulting: Develop a virtual counseling center to augment the planned new mobile application
Competitive Differentiation
While all pharmacies are competitors, management is confident that currently no other pharmacies are automated robotic medication fulfilment pharmacies, offering over the counter and prescription medication at the point-of-care or retail stores.
Deliver prescriptions with a higher level of accuracy compared to the rate of errors at traditional pharmacies
Fulfill prescriptions in less time for patients with existing records with no patient travel to another location at no additional cost
Access Pharmacy services at the point of care and retail locations
Occupies a very small space (150-250 SF), which vastly reduces start-up costs compared to traditional pharmacies
Reduces personnel costs as the dispensing, verification, labelling, and medication literature is all done by the Kiosk – better utilization of pharmacist’s resources, focusing on medication therapy instead of counting pills
Partnerships
Partnership with ScriptPro, one of the largest robotic kiosk manufacturers providing manufacturing, installation and 24/7 maintenance
Founded in 1994 with its corporate headquarters in the Kansas City area
ScriptPro is Experienced in robotics manufacturing, pharmaceutical inventory control and dispensing
The company’s initial product, the SP 200 Robotic Prescription Dispensing System, pioneered the use of robotics in community pharmacies
ScriptPro offers a comprehensive line of over 200 pharmacy automation and management system products that have revolutionized pharmacy operations in the U.S. and around the world
Executive Management
Santu Rohatgi| Co-Founder, Chairman, President and CFO
- Senior strategy, finance, operations, and business transformation executive with over twenty-five years of experience leading turnarounds and driving growth for global start-up to Fortune 500 technology and business service organizations
- Experience in managing multi-functional teams and large-scale projects, supporting mergers and acquisitions, and presenting objective strategic recommendations to stakeholders and investors
- Expertise includes financial and strategic planning, accounting, capital raising, and general administrator
- Deep knowledge in reporting, operational improvements, contract negotiations, due diligence, cost reductions, project management, Virtual Cloud and ERP system implementations
- Held various management positions at NCR, AT&T, Universal Credit Card, Fore Front, and Ceelox
- Schools include Eastern New Mexico University, Wright State University, George Washington University, Harvard Business School Online, and Wharton Business School Online
- Education includes MA, MBA, CPA, CM&AA
Board of Directors
David R. VanValkenburg | Director
- Experienced corporate executive and seasoned member of corporations’ boards of directors
- Corporate experience includes four years as an Investment Analyst, ten years in general management, sixteen years as a President of private and Public companies, and over twenty years as a member of twenty-two public and private corporate boards of directors