Investor Webinar
ZOOM Health recently hosted an investor webinar which included a brief presentation on the business followed by a Q&A session.Watch the Webinar here.
Disclaimer
ZOOM Health Limited (the Company) has prepared this Information Memorandum based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided relation to the fairness, accuracy, correctness, completeness or reliability of information, or opinions or conclusions expressed in this Information Memorandum.
The historical financial information relating to the Company included in this Information Memorandum has been prepared on the basis of the Company’s records but is unaudited and may be subject to revision if audited.
All forward-looking statements contained in this Information Memorandum are qualified by the particular assumptions upon which they are based. Such projections are preliminary and subject to change and the Company undertakes no obligation to update or revise the projections. Inevitably, some assumptions may be incorrect and unanticipated events or circumstances may affect the Company’s ultimate financial results. Further, projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks. Therefore, actual results of the Company may vary significantly from the forecasts or projections contained in this Information Memorandum.
This offer is not open to any “authorised prescriber or “delegated prescriber” (as those terms are defined in the Medicines Act 1981) which includes but is not limited to any medical practitioner, nurse practitioner, dentist, optometrist or registered midwife (as each of those terms are defined in the Medicines Act 1981)*.
If you have any questions or concerns about investing into the Company, ZOOM Care Limited (‘ZOOM Pharmacy’) or any of its associated companies, it is recommended that you consult the relevant legislation (Medicines Act 1981 and Medicines Regulations 1984), and take legal advice before establishing an interest in the Company (pursuant to this offer or otherwise).
* The provisions of the Medicines Act 1981 relevant to the exclusion of offers to “authorised prescribers” or “delegated prescribers” are outlined below:
Section 2 – Interpretation
Section 42C – Restriction on authorised prescribers and delegated prescribers holding interest in pharmacies
Investment Highlights
- First mover advantage in a large target market with significant technical barriers to entry.
- Proven business model offshore with particular success in the US and UK.
- Average month on month dispensing volume growth of 19% during the 12 months to September 2020.
- 95% customer retention after 6 months of using ZOOM (for sachet patients).
- Experienced management team with significant industry knowledge.
- Disruptive Impact Investment – Adherence is worst amongst Māori and Pasifika.
- State of the art robotics enable high volume, accurate, fully traceable prescriptions and exceptionally low error rate of < 0.01%.
- High completion rate – 99.5% of all medicines are completed and delivered to patients.
- Integrated into GP desktop practice management software and patient portals, allowing patients to choose ZOOM as their pharmacy of choice.
- Majority of revenue paid for by the Government (via Evergreen DHB contracts).
Executive Summary
Founded in 2017, Zoom Health Limited (“ZOOM Health”) has developed medicines adherence software and intellectual property that utilises the latest technology to improve patient outcomes.
Poor adherence to medication is proven to be one of the biggest issues facing the healthcare sector, resulting in increased health complications, deaths and costs to the healthcare system. 44% of patients do not collect medicines prescribed by their doctor and 75% of patients do not collect the repeats on their medicines from the pharmacy. According to the World Health Organization’s (WHO) World Health Report 2003, the degree of medication non-adherence is so great that more people worldwide would benefit more from efforts to improve medication adherence than from the development of new medical treatments.
ZOOM Health licenses its technology to its associated company ZOOM Care Limited, trading as ZOOM Pharmacy, which operates a centralised pharmacy in Auckland, allowing it to serve patients across New Zealand via a direct to consumer (‘D2C’) business model. ZOOM Pharmacy has contracts in place with 10 District Health Boards (‘DHBs’), giving it access to approximately 3.8m patients in New Zealand to deliver funded medicines. ZOOM Pharmacy delivers both funded (via DHB contracts) and unfunded medicines (paid for by patients) nationwide. By mid 2021, ZOOM Pharmacy will also deliver Over The Counter (‘OTC’) medicines to consumers nationwide.
Advances in technology such as robotics, and rapidly improving logistics solutions have empowered the D2C medicine delivery business model. The model was pioneered in the US as a result of demand from health insurers to better serve their customers, and is now expanding around the globe. The global D2C medicines market was valued at approximately US$49bn in 2019 and is forecast to reach approximately US$166bn by 2027. This highly valuable and growing market is now attracting strong investor interest with several notable transactions taking place. In September 2020, the USA’s largest health insurer, UnitedHealth Group, acquired DivvyDose, a start-up that helps patients with chronic illness get their medicines delivered in pre-sorted packages, for just over US$300m. In 2018, Amazon bought PillPack for US$750m.
ZOOM has first mover advantage in the New Zealand market, with the founding shareholders having invested approximately $9m to set the company up, acquire the necessary regulatory approvals and licenses, and prove the business model works. The barriers to entry are therefore significant, and the Total Addressable Market (‘TAM’), excluding unfunded medicines, in New Zealand is large at approximately NZ$1.08bn. In Australia, the TAM is much larger at AU$26.9bn.
Since serving its first patient in 2018, ZOOM Pharmacy has fulfilled over 116,000 prescription items for 8,800 patients across New Zealand, from 2,700 prescribers. ZOOM Health and ZOOM Pharmacy (“ZOOM”) as a consolidated group is forecast to deliver revenue of $3.4m (excluding OTC) in FY21 with a very small penetration of the funded prescription medicine market of 0.2%, before a forecast $150m revenue (including OTC) in FY25 and forecast prescription market penetration of 6.6%. ZOOM is aiming to obtain OTC market share of 3.9% in New Zealand by FY25.
ZOOM has successfully built and tested its business model and now, with the business infrastructure, hardware, software, systems and processes all in place, the company is ready to scale. ZOOM Health is now seeking to raise $3m to execute a marketing strategy to penetrate the large target market in New Zealand, and in time enter the OTC medicine market and explore viable expansion opportunities into offshore markets.
ZOOM’s goal is to improve medicines adherence and drive better patient outcomes, all while building a world class healthcare company. This is our opportunity to strengthen the New Zealand Healthcare system and we invite you to join us in doing so.
The Team
Board Members & Advisors
Core Team Members
David Taylor Managing Director
David has 30 years commercial healthcare experience in Multinational Pharma Astra Zeneca, and the Virgin LifeCare Wellness programme. He has established several privately owned healthcare companies including Radiant Health Ltd and most recently ZOOM Health and has a proven record commercialising healthcare IT.
Din Redzepagic Pharmacy Director
Din is a progressive pharmacist with a strong interest in commercial healthcare. He completed postgraduate studies in clinical pharmacy and a high honours grade in business studies from Harvard Business School. Din leads the pharmacy team utilising sophisticated IT and robotics that help patients to realise the full benefit of the medicines they are prescribed.
Matt Burrows Financial Controller
Matt is a Chartered Accountant with twenty years’ experience in public practice, consultancy, investment banking and financial control.
Jim Chaung IT Manager
Jim has over 15 years of experience supporting various technology- related projects in the healthcare industry. Jim is obsessed with new technologies and techniques that benefit the company and passionate about automating processes that liberate people to spend time on work that matters.
Sue Griffin Marketing Manager
Sue has extensive sales and marketing management experience across the pharmaceutical industry including at Astra, Sanofi, Novartis, and Radiant Health. Sue also has Account Management experience serving multinational pharmaceutical companies.
Jenny Alison Project Manager
Jenny has extensive healthcare experience, as an Intensive Care Nurse and experienced pharma executive. Jenny is also a qualified Project Manager who ensures the timely delivery of critical functionality within an agile environment.Warning statement
It's crucial for you to understand the characteristics and risks of this investment opportunity. New Zealand law normally requires people who offer financial products to provide in-depth information to investors before they invest. The usual rules do not apply to offers by companies through Snowball Effect. As a result, you may not be given all the information you need to make an informed decision. Investing is risky. Some of the key risks include loss of capital, illiquidity, lack of returns, dilution, loss of key people and customers, and lack of control. You should only invest money that you can afford to lose.
