Tabula Rasa HealthCare — Investor Presentation (June 2019)
32 slides from Tabula Rasa HealthCare's investor presentation, June 2019
Slide 1: Investor Presentation
Investor Presentation June 2019
Slide 2: Legal Disclosure
Legal Disclosure Forward-looking statements This presentation contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. These forward-looking statements include, without limitation, statements regarding the
Slide 3: Investment Highlights
Investment Highlights • Creator and Developer of a new market category of Adverse Drug Event (ADE) Identification and Prevention using unique and proprietary multi-drug Medication Risk Mitigation (MRM) matrix • Prevalence of ADEs represents a large, untapped, and growing market for TRHC’s core servi
Slide 4: Tabula Rasa HealthCare at a Glance
Tabula Rasa HealthCare at a Glance Tabula Rasa HealthCare has developed a proprietary, cloud-based software platform that reduces adverse drug events and lowers healthcare costs in at-risk populations + Founded in late 2009 $29.3 $204.3 + First health plan contract 1/1/2011 $133.5 $17.2 + HQ in Moor
Slide 5: Impact of ADEs Annually in the U.S.
Impact of ADEs Annually in the U.S . ADEs are collinear with the number of meds Average Number of RIP Prescriptions Filled Annually by Age 100,000 150,000 1 million 22 Emergency department visits Deaths Deaths 20 13 125,000 3.5 million Hospitalizations Physician office visits 6 3 18-34 35-49 50-64 6
Slide 6: TRHC's Proprietary Multi-Drug Analysis Software
T R H C ’s P ro p r i e ta r y M u l t i - D r u g A n a l ys i s S o f t wa re Goes beyond simple number of meds, to add root cause science One-to-One Drug Risk Analysis Simultaneous Multi-Drug Risk Analysis This antiquated and obsolete one-to-one TRHC’s novel software assesses the drug interaction
Slide 7: Risk Stratification Sample Analysis
Risk Stratification Sample Analysis TRHC stratifies populations using the same science principles, providing a view into the risk and opportunities across patient cohorts. Medication Risk Score Distribution (N=24,251 Medicare Members ) 2000 Number of Patients High risk 1500 Very high risk 1000 500 0
Slide 8: MedWise Risk Score Is Correlated to Annual Medical Spend
T R H C ’s P r o p r i e t a r y M e d W i s e R i s k S c o r e I s C o r r e l a t e d to Annual Medical Spend 50,000 Lower drug risk correlates 45,000 with lower Annualized Medical Spend medical costs 40,000 35,000 (2016 dollars) 30,000 25,000 20,000 20+ = high risk 15,000 10,000 5,000 0 0 1 2 3
Slide 9: Proven Results Across Populations
Proven Results Across Populations PACE: Northeast Client Part D: EMTM Year One Results Hospital Utilization TRHC’s • CMS launched an Enhanced Medication 10 Year One Results Therapy Management pilot in 2017 Hospitalizations per 100 members 8 • Goal: Reduce total medical expenses by 2% 6 in five years
Slide 10: Our Markets & Growth Strategy
Our Markets & Growth Strategy 2019 (NASDAQ: TRHC) Medication Risk Identification & Mitigation 10 Proprietary and Confidential -- © 2019 Tabula Rasa HealthCare, Proprietary Inc. and Confidential -- © 2019 Tabula Rasa HealthCare, Inc.
Slide 11: Tabula Rasa Medication Risk Mitigation Product Portfolio
Tabula Rasa Medication Risk Mitigation Product Portfolio Market Payors & Medicare Community PACE Hospitals Served Pharmacists Part D Pharmacies Payors & Part D MTM / End User Providers Pharmacists Medicaid MTM Pharmacists Providers Revenue PMPM PMPM SaaS/License SaaS/License SaaS/License Model MRM M
Slide 12: How big are the markets we focus upon?
H o w b i g a r e t h e m a r ke t s w e f o c u s u p o n ? PACE $1.0 Billion Medicare Heath Plans $1.5 Billion Payors Medicaid Managed Care $2.5 Billion Commercial Health Plans $2.5 Billion Medicare and Medicaid estimated at $3 PMPM – Commercial estimated at $1 PMPM U.S. Pharmacists $1.0 Billion P
Slide 13: Company growth since 2011 starting with PACE
I n 2 0 1 1 w e s t a r t e d w i t h PA C E . I n 2 0 1 6 - 2 0 1 9 , w e a d d e d o t h e r c o m p a n i e s t h a t w e r e PA C E - f o c u s e d , f o l l o w e d b y C o m m u n i t y & Hospital Pharmacists-focused companies. = PACE focused = Pharmacist focused 2019 (NASDAQ: TRHC) Medication
Slide 14: Tabula Rasa HealthCare: Leading Provider in Medication Safety
Ta b u l a R a s a H e a l t h C a r e : L e a d i n g P r o v i d e r i n M e d i c a t i o n S a fe t y Leading Provider of MTM Services leveraging 6 Call Leading Network of Centers to manage 10,000+ Community Over 8 Million Patients Pharmacies Single Served by Over 400 Technology Platform Health
Slide 15: PACE Enrollment Poised to Accelerate
PACE Enrollment Poised to Accelerate Historical PACE Enrollment PACE 2.0 Annual Growth from 2015-2019: 8-10% Anticipated Future Growth Rate: >15% 2018 100k target 2025 Pace Enrollment 2011 20k enrolled 2018 45k enrolled enrollment 200k target enrollment 50,000 + PACE 2.0 launched by the National PAC
Slide 16: Part D Medication Therapy Management (MTM)
Part D Medication Therapy Management (MTM) Historical Part D Enrollment Sinfonia MTM Offering CAGR: 5.8% + Sinfonia is the premier provider of MTM to 41.9 43.4 Part D providers 40.4 38.6 36.8 + Member outreach regarding safety concerns, Part D Members (millions) 34.7 adherence, and cost savings oppo
Slide 17: EMTM Pilot Exceeded the Goal in Year One
EMTM Pilot Medicare Fee-for-Service Enhanced Medication Therapy Management (EMTM) patients for TRHC + Five-year pilot program launched by CMMI + Opportunity for stand-alone Medicare Part D programs to right-size MTM investments, optimize medication use and improve care coordination + Five separate r
Slide 18: Community Pharmacies
Community Pharmacies PrescribeWellness Offering PrescribeWellness by the Numbers PrescribeWellness’ SaaS-based data and analytics software works with community pharmacists to engage and better service their patients The solution reviews immunization databases, offers medication synchronization, Medi
Slide 19: Long-Term Growth Strategy
Long-Term Growth Strategy + Add new PACE providers Expand PACE + Grow organically within existing customer base Leadership + Currently service 85% of PACE providers, but only 15% utilize Cross-Sell TRHC’s entire solution suite + Up-sell MRM to MTM customers Drive TRHC’s MRM + Connect with PrescribeW
Slide 20: Financial Overview
Financial Overview 2019 (NASDAQ: TRHC) Medication Risk Identification & Mitigation 20 Proprietary and Confidential -- © 2019 Tabula Rasa HealthCare, Proprietary Inc. and Confidential -- © 2019 Tabula Rasa HealthCare, Inc.
Slide 21: Financial Highlights
Financial Highlights Strong Visibility into Future Top Line Growth + Very high customer and revenue retention rates 2019 Revenue Breakdown + Consistent underlying same-store growth within customer base Skilled Nuring Facilities, Commercial, ~1% 2% + Additive acquisitions present compelling cross-sel
Slide 22: Track Record of Consistent Growth
Track Record of Consistent Growth Annual Revenue ($M) Annual Adjusted EBITDA ($M) $285 $38.5 $204 $29.3 $133 $17.2 $95 $14.3 $70 $8.6 2015 2016 2017 2018 2019E 2015 2016 2017 2018 2019E Exclusive and Multi-year Contracts 98% Revenue Retention Per-Member Per-Month and Subscription-Based Revenue Model
Slide 23: Strong Financial Performance
Strong Financial Performance Revenue ($M) Clients 224 $204.3 $61.0 170 $133.4 $43.9 $30.0 $91.5 $16.8 $38.2 $95.2 112.76 $27.2 $31.0 1Q'18 1Q'19 FY17 FY18 FY17 FY18 Product Revenue Service Revenue Adjusted EBITDA ($M) Gross profit ($M) $5.7 $66.6 $29.3 $4.3 $19.3 $17.2 $39.8 $12.3 FY17 FY18 1Q'18 1Q
Slide 24: Medication Risk Management Offering Summary
M e d i cat i o n R i s k M a n a ge m e nt O ffe r i n g S u m m a r y PACE Payors and At-Risk Providers Technology Technology Technology Clinical GM: Low Services 20’s Clinical Services Medication Fulfillment PMPM + FFS PMPM or PUMPM SaaS Gross Margin: Low 20s Gross Margin: ~40% Gross Margin: ~80%
Slide 25: Financial Outlook
Financial Outlook 2Q19 Guidance 2019 Guidance Revenue $68m - $73m $280m - $290m Net Income (Loss) ($10.9)m – ($10.1)m $(39.3)m - $(35.1)m Adjusted EBITDA $8.5m - $9.5m $36.0m - $41.0m 2019 (NASDAQ: TRHC) Medication Risk Identification & Mitigation 25 Proprietary and Confidential -- © 2019 Tabula Ras
Slide 26: Appendix
Appendix 2019 (NASDAQ: TRHC) Medication Risk Identification & Mitigation 26 Proprietary and Confidential -- © 2019 Tabula Rasa HealthCare, Proprietary Inc. and Confidential -- © 2019 Tabula Rasa HealthCare, Inc.
Slide 27: Proficient Management Team
P ro f i c i e nt M a n a ge m e nt Te a m Calvin H. Knowlton, PhD Brian W. Adams Robert L. Alesiani, PharmD Janice R. Casserly, JD Kevin J. Dill, JD Chief Executive Officer Chief Financial Officer Chief Pharmacotherapy SVP, Human Resources Chief Compliance Officer & Officer General Counsel Andrea C
Slide 28: Unique Market Position, High Barriers to Entry and Deep Competitive Moat
U n i q u e M a r ke t Po s i t i o n , H i g h B a r r i e rs to E nt r y a n d D e e p C o m p e t i t i ve M o at Solid Competitive Advantage High Barriers to Entry Proprietary Multidrug Analytics platform demonstrating optimized outcomes Medication Risk Matrix Data analytics Extensive Clinic
Slide 29: TRHC Intellectual Property
T R H C I nte l l e c t u a l P ro p e r t y Medication Risk Mitigation Patents Issued Pending • Medication • # 8,392,220 • Medication Management System and Method (filed 12/22/14) Management • Medication Risk Mitigation Matrix System and Method System and (filed 1/28/16) • Long QT-JT: Index & Score
Slide 30: Balance Sheet Summary
Balance Sheet Summary ($ in thousands) Period Ended December 31, 2018 December 31, 2017 Cash $25,029 $10,430 Accounts receivable, net 27,950 17,087 Other current assets 10,332 $7,934 Current assets $63,311 $35,451 Noncurrent assets 207,646 152,381 Total assets $270,957 $187,832 Long term debt 1,097
Slide 31: Reconciliation of GAAP Net Income to Adjusted EBITDA
Re co n c i l i at i o n o f G A A P N e t I n co m e to A d j u ste d E B I T DA at Ye a r E n d ($ in thousands) Three Months Ended March 31, 2019 2018 Net income (loss) ($10,979) ($18,094) Add: Interest expense 2,693 63 Income tax expense (benefit) (4,041) 2,650 Depreciation and amortization 6,29
Slide 32: Reconciliation of GAAP Net Income to Adjusted EBITDA
Re co n c i l i at i o n o f G A A P N e t I n co m e to A d j u ste d E B I T DA ($ in thousands) 2015 2016 2017 2018 Net income ($2,864) $5,521 $12,791 ($47,269) Add: Interest expense 5,915 4,488 688 906 Income tax expense (benefit) 328 541 (9,339) (3,376) Depreciation and amortization 3,933 5,115
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