Scienture Holdings, Inc. · NASDAQ:SCNX
Scienture — Trxade Group — Investor Presentation (September 2020)
20 slides from Scienture's investor presentation, Sep 2, 2020
Slide 1: The Trusted Marketplace for Pharmacies – Corporate Presentation
“The Trusted Marketplace for Pharmacies” Corporate Presentation August 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 s
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 11,700+ 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 11,725 10,9302 236 10,315 29:53 9,978 9,567 ll | | | | | Q2 Q3 Qt Qi a2 Q3 Q4 Qi Qe 2018 2018 2018 2019 2019 2019 2019 2020 2020 «Increase the number of independent ph
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) (DTRADE Annual Revenue Growth (USD $ in Thousands) 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 Mark
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: Appendix: Consolidated Balance Sheets
Appendix: Consolidated Balance Sheets TRADE Assets Current Assets Cash Accounts Receivable, net Inventory Prepaid Assets Deposits for Inventory purchases Total Current Assets Property Plant and Equipment, Net Other Assets Deposits Deterred Offering Costs Right of use leased assets Goodwill Total Ass
Slide 19: Consolidated Statements of Operations
Consolidated Statements of Operations Appendix: C TRADE Three months ended Six months ended 2020 2019 2020 2019 Revenues $ 6,592,637 S$ 1,916,414 $ 8,795,957 S$ 3,428,935 Cost of Sales 4,387,865 753,138 3,151,049 1,118,977 Gross Profit 2,004,772 1,163,276 3,644,908 2,309,958 Operating Expenses Gener
Slide 20: Reconciliation of Net Income to Adj. EBITDA
Reconciliation of Net Income to Adj. EBITDA ¢ Appendix: TRADE For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Add (deduct): Depreciation and amortization 1250 1,250 2,500 2,500 ‘Add (deduct) Stock Based comnencetion 1,035,373 64,011 1,176,153 99,980 *EBITDA
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