Zoom Health Limited (Zoom Health) is an online pharmacy that delivers medicines directly to patients.
Zoom Health's target market is the chronic prescriptions market, being patients taking 5 or more medicines a day over an extended time period. Zoom Health’s goal is to improve medicines adherence to drive better patient outcomes.
Zoom Health has been operating since May 2017 and has delivered average month on month revenue growth of 28% since Dec 2019.
The traditional method of prescription fulfilment and follow up of patient adherence is not effective, meaning inadequate outcomes for patients.
A quarter of all patients don’t collect the medicine prescribed to them and half of all patients don’t take medicine correctly. Put simply, people don’t take medicine properly under the current system.
Improving medicines adherence is the single biggest opportunity to improve health outcomes, resulting in less disease progression, fewer hospital admissions, faster recovery times and lower mortality rates - Haynes et all Cochrane database 2002
Zoom Health solves the issue of poor medicine adherence by delivering medicine directly to patients.
A study by the European Heart Journal that combined data from 2 million patients found that patients with good adherence habits had a 35% reduced risk of all-cause mortality. A further study by the Pharmaceutical Care Management Association (PCMA) found that those who only used local pharmacies were 56% adherent to their prescriptions, while patients who received medications through home delivery were nearly 88% adherent.
Zoom Health is designed to serve people who manage multiple medications. Each month, customers receive a personalised roll of pre-sorted medications filled by qualified pharmacists, and delivered from a centralised Zoom Health pharmacy hub. The Zoom Health pharmacy hub uses the latest robotic machines alongside pharmacists to fulfil prescriptions at scale.
Each shipment includes a medication label that has a picture of each pill and notes on how it should be taken. Once prescriptions are delivered to patients, patients access information about their medicine via their Zoom Health app, a software platform created in-house, to help manage their medications, coordinate refills, and ensure adherence.
Spending on U.S. prescription medications is approaching US$500 billion a year and growing up to 7% annually, according to IQVIA, a provider of health data. In the US 33% of all chronic prescription medicines are now delivered direct to patients. In New Zealand this percentage is estimated to be less than 1%.
US company PillPack first implemented the delivery medicine model in 2014 and quickly grew revenues to US$299m by 2018. Revenues were forecast to reach US$635m in 2019 before the company was acquired by Amazon for an estimated US$750m.
Home prescription delivery is on the rise: CVS reported a 1,000% year-over-year increase in Q1 - and that’s with 49% of people saying Zoom Health still feel very comfortable going to their local pharmacy during the pandemic.
Covid-19 has also driven increased demand for virtual GP consultations which in turn has increased the demand for the delivery of medicines.
In New Zealand, Zoom Health has identified that chronic medicines are the biggest market opportunity for the delivery model.
The company estimates that 20 - 25% of prescriptions are repeats requested by patients outside the GP clinic. These repeat requests are especially suited to a direct delivery model, saving time and removing unnecessary cost from the process.
The addressable market opportunity for Zoom Health in New Zealand for the chronic medicine market alone is greater than $175m per annum with 500,000 patients regularly taking 5 or more medicines per day. At a similar delivery rate to the US (33%), NZ’s total delivery market would be worth approximately $150m per annum.
The company has first mover advantage in New Zealand and is the only operator in the market with 10 DHB funding contracts. These contracts cover approximately 4 million people.
Made up of healthcare professionals, clinical pharmacists and commercial specialists, the management team of Zoom Health has over 30 years of experience and are well placed to deliver on the company’s growth plans.
Having invested a significant amount of capital to set the business up and navigate the complexities of the industry and applicable regulations, Zoom Health has spent the period since launch refining processes, and proving the business model works. The company now has over 1,100 patients being delivered personalised sachets of medicine direct to their door.
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Snowball Effect is a New Zealand-based online investing marketplace, that enables New Zealand companies to offer shares to members of the public. Snowball Effect was founded in 2012 and launched in August 2014, after being one of the first to acquire an equity crowdfunding license from the New Zealand Financial Markets Authority (FMA). Over NZ$75 million has been raised on the platform.
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