Profitable and Established Dermatology Focused Pharmacy

Executive Summary
• The Company operates a dermatology focused pharmacy situated in a highly attractive market in the NY Metropolitan area
• Dermatology pharmacy is a fast growing (~10%) and attractive market due to the recurring and non-discretionary nature of the conditions it treats (insulated from recession), the prevalence of generic drugs with high gross margins, manufacturers who are eager to partner with clinically and customer focused pharmacies, and physicians, who are loyal to providers that provide good value and service to their patients
• The Company is highly profitable, well positioned for growth, and is expected to generate 2023E revenue and Adjusted EBITDA of $9.0M and $1.2M (13.9% margin), respectively
Investment Highlights
• Higher-than-average generic mix by revenues and dollars per Rx leads to robust profitability as demonstrated by an attractive gross profit of $28.70 per Rx in 2023E
• Comprehensive payor access: Commercial (31%), Medicaid (2%), Medicare Advantage and Part D (40%), and Cash, Discount Cards, and Manufacturer Coupons (27%)
• Diverse and growing base of prescribers (5,385), who like the easy referral process, inventory in stock, clinical support for patients (no office calls), and lower cost to the patient
• Strong and experienced sales, clinical, and operations staff, who provide great service to prescribers, payors, and patients
• Exclusive and preferred contracts with pharma companies that provide favorable purchasing, as well as co-pay programs for their customers
• Numerous growth opportunities for the business including the acquisition of other dermatology focused pharmacies, de novo growth, expansion into other disease states (e.g., Hep C, HIV, Transplant), and contracting with 340B eligible entities