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Synthium Pitch Deck

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14
Investor Pitch Deck April 2016
Transcript
Page 1: Synthium Pitch Deck

Investor Pitch DeckApril 2016

Page 2: Synthium Pitch Deck

Who We Are

The most advanced end-to-end supply chain

platform for healthcare.

Synthium Health is engineered to be sequentially logical,

robust and simple to learn.

Page 3: Synthium Pitch Deck

Synthium Health

The most advanced cloud based eCommerce

platform for Healthcare supply chain

Content Management

Marketing

Selling

SupportReporting

and Analytics

Digital Commerce

Excess Inventory Clearance

The Technology

Page 4: Synthium Pitch Deck

Value Proposition

Eliminates cost plus contracts on PPI’s

Instant transaction, e-bill streamlines internal process

Sell excess inventory to expanded market

Instant compliance with 2016 "purchase by competitive bid rule“

Data sharing, reporting, low inventory e-mails

Lower sales costs

Expanded customer base

Reduced costs forlogistics & warehousing

Real time billing and quicker payments

Global access to participate in RFQ’s

What’s in it for Sellers? What’s in it for Buyers?

Page 5: Synthium Pitch Deck

Seed Funding of $500k by founder Customer Research &

Surveys

Concept - Research - Survey

Founder developed the back endHired and managed a global team of

designers and engineers

Lead - Hire - Develop

Built the Production Servers & Network Architecture.

Advanced User Testing

Added 2 Sales & Marketing Professionals

Test - Add - Emerge - Expand

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q3 2015

Developed Pricing and Marketing Strategies Review of Exchange Rules & User Agreements by

FDA Legal CounselSEO/marketing efforts start first foreign client

signed

Document - Market - Sell

Tested & Launched platformAdded New Users

Advanced Partnership Talks with 3 Major Players

Improve - Expand - Grow

Momentum & Traction

2016

EnrollmentMembers were approached

and enrolled current standing at 409 and growing

Page 6: Synthium Pitch Deck

Market Opportunity

The global healthcare supply chain market was valued at $9.2 billion in 2014 and is poised to grow at a

CAGR of 8.3% from 2014 to 2019 to reach $13.8 billion by 2019. The North American market is expected

to grow at the highest rate, with the need to lower healthcare costs being the major driver for this market.

- Markets & Markets research 2015

Medicare spending growth is expected to accelerate after 2015 due to expected increases in use of

medical goods and services by aging beneficiaries and continued baby-boomer enrollment.

- Cms.gov 2013

“Our analysis suggests that the healthcare sector can improve its margins by tens of billions of

dollars and improve patient safety by making supply chain improvements”

-McKinsey and Company 2013

Page 7: Synthium Pitch Deck

Target Markets

Additional Market Segments

1. International buyers even GPO’s and other supply chain organizations2. Independent pharmacies3. The growing Medicare population

Page 8: Synthium Pitch Deck

Competitive Landscape

The Synthium Health platform outperforms all other comparative

platforms across the board with its end-to-end functionality

Page 9: Synthium Pitch Deck

Vijay ReddyCEO & Co-founderOver 24 years of experience in the health industry, having played a key role in developing OSI Systems, Inc., a healthcare start-up company comprised of five individuals, into a company generating over $15 million annually in revenue over a period of only seven years. After leaving OSI, Vijay Reddy acquired ProClaim Inc. in 2006. In late 2012, he began to assemble a technology team that would address the current and future needs of healthcare marketplace.

Yamini VedhireCFO & Co-founderMore than 18 years of experience handling the financial and operational functions of different companies. A maid service, a web design company and a medical billing company. She holds an MBA and majored in finance at the Delhi University, India.

Team

Page 10: Synthium Pitch Deck

1. A “Top 10 Startup” in the healthcare supply chain solutions market

(Medical Design & Outsourcing Q2 2016)

2. Seasoned management team with 25 years healthcare related expertise that has

already invested over $500k into Synthium Health

3. Currently in advanced talks to partner with a well known Global Healthcare

Logistics Company as well as couple of GPOs

4. Market consolidation is expected to continue which underpins the investment

case for the acquisition of Synthium Health by a major player relatively quickly

5. Significant opportunity for an exit by 2020 at $17m (5.7x EBITDA multiple)

• Projected IRR of 62%

• Projected Cash-on-Cash return of 7x

Investment Case

Page 11: Synthium Pitch Deck

Profit & Loss

USD 2016 2017 2018 2019 2020 2021

Income StatementRevenues

Membership dues 17,625 97,958 166,625 242,667 316,271 397,406

Data Management and Reporting 12,250 436,500 873,000 1,134,900 1,475,370 1,917,981

Advertising 23,050 217,250 344,690 517,035 775,553 1,163,329

Transaction Fees 126,600 2,083,482 6,250,446 9,375,670 14,063,505 21,095,257

Total Revenue 179,525 2,835,190 7,634,761 11,270,271 16,630,698 24,573,973

Cost of Goods Sold

Direct Labor - - - - - -

Total COGS - - - - - -

Gross Profit 179,525 2,835,190 7,634,761 11,270,271 16,630,698 24,573,973

Expenses

Engineering & Technology 46,877 174,345 199,826 243,682 323,930 476,590

Sales and Marketing 255,004 1,151,851 3,793,193 5,264,034 7,547,672 10,829,727

Administrative 119,689 298,251 377,868 421,278 479,034 552,584

Total Expenses 421,569 1,624,447 4,370,887 5,928,994 8,350,635 11,858,901

Net Ordinary Income -242,044 1,210,743 3,263,874 5,341,277 8,280,062 12,715,072

Other Income/(Expense)

Depreciation & Amortization 2,001 17,141 35,392 46,524 43,905 55,095

Interest Expense - - - - - -

Other Expense - - - - - -

Other Income - - - - - -

Net Other Income/(Expense) 2,001 17,141 35,392 46,524 43,905 55,095

Net Income Before Tax -244,045 1,193,603 3,228,482 5,294,753 8,236,158 12,659,977

Tax - 189,292 807,121 1,323,688 2,059,039 3,164,994

Net Income/Loss -244,045 1,004,310 2,421,362 3,971,065 6,177,118 9,494,983

Page 12: Synthium Pitch Deck

-$2,000,000

-$1,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Cumulative Net Income

Break Even

Break Even in Q1 2018

Page 13: Synthium Pitch Deck

$1.75M in Series A funding

Enhance the functionality of the Synthium

platform in order to

Scale up the user base by building out the

marketing team

Develop a world class customer service

capability.

The Ask

(Convertible Note: 8% coupon, 20% discount)

Page 14: Synthium Pitch Deck

Vijay ReddyCEO & Co-founder

Phone: 770 809 5248

Email:

[email protected]

Thank You

Address:

1230 Johnson Ferry Road

Suite I-40

Marietta, GA 30068

Yamini VedhireCFO & Co-founder

Phone: 855 722 4672

Email:

[email protected]


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