Scienture Holdings, Inc. · NASDAQ:SCNX
Scienture — Trxade Group — Investor Presentation (June 2020)
21 slides from Scienture's investor presentation, Jun 8, 2020
Slide 1: The Trusted Marketplace for Pharmacies – Corporate Presentation
“The Trusted Marketplace for Pharmacies” Corporate Presentation June 2020
Slide 2: Safe Harbor Statement
« Safe Harbor Statement 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, cash flo
Slide 3: Corporate Timeline
C TRxADE Corporate Timeline 2010 - Founded by Suren Ajjarapu (CEO) and Prashant Patel (COO & president), investing a total of ~$5.5M of their own capital 2013 - Launched second service to help pharmaceutical distributors’ better source their pharmaceutical needs within a highly structured single pla
Slide 4: About TRxADE Group, Inc.
( About TRxADE Group, Inc. TRADE 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 Business to Business * Market Leader: Operates the
Slide 5: Pharmaceutical Market Overview
( Pharmaceutical Market Overview DIRADE Independent Pharmacy U.S. Pharmaceutical Industry? Nationwide Footprint? * $330 billion per year industry Current Trxade Users Growth * Over 65,000 pharmacy facilities & hundreds of state-licensed F Opportunity suppliers * Excluding several large national chai
Slide 6: Market Dynamics
C 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
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ee eee eee ee ee ee ee ee ee ee w NJ w 1 i 1 / %. ar x “7% ‘ \ \ \ \ (TRADE / \, DeliveMeds Marketplace Platform Pac™ \ ! \ ne \ We | phiti seripts H i i oe - ~ See. 2- eee o as CoMMUNITY SPECIALTY rs PHARMACY Fa ~, NASDAQ: MEDS © 7
Slide 8: Divisions: TRXADE Marketplace
C Divisions: TRXADE Marketplace A Trusted Marketplace for the Pharmaceutical Supply Chain The TRXADE Marketplace Platform utilizes a proprietary database & / algorithms to identify pharmaceutical products that are likely to be OT ADE in short supply & delivers them to independent pharmacies. Marpern
Slide 9: 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 10: Divisions: Pharma-Bay
« Divisions: Pharma-Bay Accurate & Real-Time Pharmacy Acquisition Cost (PAC) Benchmark .Pagm Pharma-Bay offers members the only accurate and real-time Pharmacy Acquisition Cost (PAC) benchmark in the pharmaceutical industry. New federal healthcare legislation is predicated upon the use of cost savin
Slide 11: Divisions: Bonum Health
( Divisions: Bonum Health (TRADE Access to Board-Certified Medical Providers from Anywhere Individually or through an employer sponsored program, patients can access TeV conv board-certified medical providers nationwide using the Bonum Health N HEALTH ‘ mobile app, website or in the future, pending
Slide 12: Divisions: DelivMeds
« Divisions: DelivMeds TRADE Bringing Healthcare Direct to Consumers Through Technology TRXADE’s DelivMeds mobile app leverages the registered network of over 11,400 pharmacies who have purchased and dispensed prescriptions to over 12 million consumers, as well as other channel partners including ph
Slide 13: Divisions: Direct to Consumer Sites
« Divisions: Direct to Consumer Sites Sale of Products Direct to Consumers G Phil si Scripts, Community SPECIALTY PHARMACY Phil Scripts often allows patients to pay less for their medications at a cash price vs. their copay or out of pocket cost (deductible or no _ . 5 insurance) Specialized care fo
Slide 14: Key Operating Metrics
C Key Operating Metrics TRADE The main drivers of our growth strategy are simple... Total Independent Pharmacies on TRxADE Platform 1 gag30,6201082° 9,978 9a18 9587 8,835 | WII Qi Q2 3 Qt Qi Qz2 Qs Qa ai 2018 2018 2018 2018 2019 2019 2019 2019 2020 .. Increase the number of independent pharmacies...
Slide 15: Selected Financials
C Selected Financials * Rapid Growth: 94% YoY growth in FY2019 with strong sequential growth High Margin: Revenue from transaction fees (Credit Card/PayPal model) does not include the drugs value (over $100M annually), hence “tech like margins” Built-Out Platform: Continued platform development is a
Slide 16: Management
« Management i 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 Januar
Slide 17: Key Takeaways
( Key Takeaways (NASDAQ: MEDS) (TRADE 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 Marke
Slide 18: Investor Relations Contact
www.trxade.com Investor Relations Contact TRxADE Group, Inc. : Gres Falesnik 3840 Land O' Lakes Boulevard SAN iEAIEE Heer Luke Zimmerman Land O'Lakes, FL 34639 www.pharmabayonline.com MZ North America IRGECELE ME (800), 261-0281 www.bonumhealth.com MEDS@mzgroup.us www.delivmeds.com WWw.mzgroup.us ww
Slide 19: Appendix: Consolidated Balance Sheets
Appendix: Consolidated Balance Sheets ‘March 31, 2020 Assets (Current Assets Cash $ 7,701,305 Accounts Receivable, net 877.097 ventory 368.402 Prepaid Assets 287375 Deposits for Inventory purchases 380.800 ‘Total Curent Assets oo ‘Property Plant and Equipment Net 197242 Other Assets Deposits Deferre
Slide 20: Appendix: Consolidated Statements of Operations
C Appendix: Consolidated Statements of Operations TRADE Revenues Cost of Sales Gross Profit Operating Expenses General and Administrative Operating Income Share in Equity Loss Investment Interest Expense, net Net Income Net Income per Common Share — Basic: Net Income per Common Share - Diluted: Weig
Slide 21: Reconciliation of Net Income to Adj. EBITDA
Reconciliation of Net Income to Adj. EBITDA C Appendix: @TRADE Three Months Ended March 31, 2020 March 31, 2019 Net Income attributable to Trxade Group, Inc. 5 180,303 $ 125,229 Add (Deduct): Interest, net 7.924 17.558 Depreciation and Amortization 1,250 1,250 EBITDA 189.477 144.037 Add (Deduct): Sh