Scienture Holdings, Inc. · NASDAQ:SCNX
Scienture — Trxade Group — Investor Presentation (November 2020)
20 slides from Scienture's investor presentation, Nov 9, 2020
Slide 1: The Trusted Marketplace for Pharmacies – Corporate Presentation
“The Trusted Marketplace for Pharmacies” Corporate Presentation November 2020
Slide 2: Safe Harbor Statement
= « Safe Harbor Statement Q@TRADE The information set forth herein contains forward-looking statements. Forward-looking statements include all statements that do not relate solely to historical or current facts, including, but not limited to, statements regarding future operations, financial results
Slide 3: Corporate Timeline
C TRxADE Corporate Timeline TRADE 2010 - Founded by Suren Ajjarapu (CEO) and Prashant Patel (COO & president), investing a total of ~$5.5M of their own capital ] Pharmacies Secured: 2013 - Software development completed, and first customer secured 2014 — Began trading as public company TRXD td 2013
Slide 4: About TRxADE Group, Inc.
C About TRxADE Group, Inc. TRXADE is a technology & services company focused on a more effective process for purchasing and delivering prescription drugs to independent pharmacists & consumers An Online Pharmaceutical Supply Chain Marketplace * Market Leader: Operates the largest technology platform
Slide 5: Pharmaceutical Market Overview
« Pharmaceutical Market Overview Independent Pharmacy U.S. Pharmaceutical Industry? Nationwide Footprint? * $330 billion per year industry cowl Trxade Users * Over 65,000 pharmacy facilities & hundreds of state-licensed Opportunity suppliers * Excluding several large national chains, there are ~24,0
Slide 6: Market Dynamics
« Market Dynamics Problem * The existing market for prescription drugs is both large & growing; yet highly inefficient & costly * Large pharmacy benefit managers (PBM), wholesalers & retail chains stifle competition to capture significant excess margin at the cost of the consumer, employers & govern
Slide 7: Divisions of TRxADE Group, Inc.
< Divisions of TRxADE Group, Inc. ®TRADE $ ComMunrry SPECIALTY PHARMACY TRADE Marketplace Platform Chart is purely illustrative and not representative of the Company’s revenue mix NASDAQ: MEDS e 7
Slide 8: Divisions: TRXADE Marketplace
C Divisions: TRXADE Marketplace A Trusted Online Marketplace for the Pharmaceutical QT ADE Supply Chain . DIR’ The TRXADE Marketplace Platform utilizes a proprietary database & — Merketplace Platform algorithms to identify pharmaceutical products that are likely to be in short supply & delivers them
Slide 9: Divisions: TRxADE Marketplace (cont'd)
C Divisions: TRxADE Marketplace (cont’d) IRADE 11,800+ Pharmacies Safe, secure and easy to use web-based platform * Economies of scale for purchase prices from large community of pharmacies purchases * No membership or transaction fees * Eliminates negative reimbursement — occurs when the beneficiar
Slide 10: Divisions: Integra Pharma Solutions
C Divisions: Integra Pharma Solutions Pharmaceutical Supplier of Quality Rx Products at Significant Savings Integra Pharma Solutions is the pharmaceutical supplier of choice for healthcare organizations of all sizes. The Company’s expertise in the distribution of products extends to all healthcare m
Slide 11: Divisions: Bonum Health
C Divisions: Bonum Health IRADE Access to Board-Certified Providers & Health Assessment Tools, from Anywhere Individually or through an employer sponsored program, patients can access board-certified medical providers nationwide using the Bonum Health mobile app, website or in the future, pending th
Slide 12: Divisions: Direct to Consumer Sites
C Divisions: Direct to Consumer Sites TRADE Sale of Products Direct to Consumers Specialized care for patients suffering from (ox chronic conditions with a focus on rare or p difficult to find medications including oral COMMUNITY SPECIALTY medications, self-injectables and other PHARMACY supportive
Slide 13: Key Operating Metrics
C Key Operating Metrics @TRADE The main drivers of our growth strategy are simple... Total Independent Pharmacies on TRxADE Platform 10,315 11,72511,800 9,971 9318 9567 11,236 10,630 10,930 | | Qs Qt Qi a2 Q3 Qa Qi gz as 2018 2018 2019 2019 2019 2019 2020 2020 2020 .. Increase the number of independ
Slide 14: Selected Financials
ZZ ( Selected Financials IRADE * Rapid Growth: 94% YoY growth in FY2019 with strong sequential growth * High Margin: Revenue from transaction fees (Credit Card/PayPal model) does not Annual Revenue Growth include the drugs value (over $100M annually), hence “tech like margins” (UspiSunimtin sands) $
Slide 15: Management
« Management IRADE Suren Ajjarapu, Chairman of the Board, Chief Executive Officer and Secretary. Mr. Ajjarapu has served as Chairman of the Board, Chief Executive Officer and Secretary since our acquisition of Trxade Group, Inc., a Nevada corporation (“Trxade Nevada”) (our predecessor company) on Ja
Slide 16: Key Takeaways
C Key Takeaways (NASDAQ: MEDS) TRADE TRXADE is a technology and services company focused on a more effective process for purchasing and delivering prescription drugs to independent pharmacists and consumers. A Tech-Enabled Pharmaceutical Supply Chain Marketplace Market Leader: Operates the largest t
Slide 17: Contact
C Contact Investor Relations Contact Greg Falesnik Luke Zimmerman MZ North America Main: 949-259-4987 MEDS@mzgroup.us www.mzgroup.us TRxADE Group, Inc. 3840 Land O' Lakes Boulevard Land O'Lakes, FL 34639 (800) 261-0281 www.trxadegroup.com www.trxade.com www.rxintegra.com www.bonumhealth.com www.coms
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets Appendix: TRADE September 30, December 31, 2020 2019 Assets Current Assets Cash S$ 6.647.763 $ 2,871,694 Accounts Receivable, net 1,034,482 792.050 Inventory 1.647.088 36,761 Prepaid Assets 232,671 82/452 Deposits for Inventory purchases 1,081,250 a Total Current Assets 7
Slide 19: Consolidated Statements of Operations
C Appendix: Consolidated Statements of Operations TRADE Trxade Group, Inc. Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2020 and 2019 (unaudited) Three months ended Nine months ended 72020) 2018) 2020 2018) Revenues $ 6392269 § 2,311,426 15,128,206 5,740,36
Slide 20: Reconciliation of Net Income to Adj. EBITDA
Appendix: @TRADE Reconciliation of Net Income to Adj. EBITDA For the three months ended For the nine months ended September 30, September 30, 2020 2019 2020 2019 Net Income (loss) attributable to Trxade Group, Ine. $ 138,391 $ 27,565 $ (223,893) $ 210,775 Add (deduct): Interest, net 7,430 13,385 22,