Healthcare Update

1
Healthcare Update

• Vartech 2011

2
Agenda

• Industry Trends
• Healthcare Strategy
• HIS Certifications
• Target Markets
• Channel Message
• Business Model
• Current Sales Tools

3
Using Color to Prevent Patient Errors

• Pharmacy Departments constantly looking for tools
  and processes to increase patient safety
• Approximately 1.5 million preventable Adverse
  Drug Events (ADE) per year in US-(Aspden,Wolcot,
  Bootman, Cronenwett 2007)
• Average cost of ADE is 5,857 per event (JAMA
  Bates Study 1997)
• Color, symbols, and fonts can be tools to
  increase patient safety

4
Industry Trends

• Growing incidence of patient incidents over past
  5 years involving compounding errors
• Pharmacies always seeking ways to reduce errors

Pharmacy Purchasing Products April 2011
5
FY12 Healthcare Strategy

• Leverage HIS Certifications
• McKesson
• Cerner
• MediTech
• Sunquest
• Expand color inkjet in Pharmacy and Patient Care
• Build an Epson label channel
• Enlist more ISVs to penetrate label market
• P60
• C3400
• Recruit Scanner ISV Channel

6
Strategy HIS Product Certifications

• Current HIS/ISV Certifications
• Tier One HIS
• McKesson
• Sunquest
• Cerner Etreby
• MediTech
• Tier Two ISV
• Baxa
• Merge
• Trimor
• NEPS
• RxScan

MEDITECH
7
Strategy cont. Target Market Color

• Hospital Inpatient Pharmacy
• Includes OR/Anesthesia
• Pharmacy Central-Fill
• Mail Order
• Distribution Refill
• Independent Compounding Pharmacies

Pharmacy Dist. Refill
Independent Compounders
8
Strategy cont. Target Market P60

• Leverage HIS certifications
• Sunquest
• Meditech
• Hospital Departments
• ER
• Patient Care
• Laboratory
• Others
• Penetrate bedside specimen collection labeling
  through certifications

9
Channel Opportunity with Color

• Benefits of Color on Demand
• Competitive Cost per label
• Business Model for Partners

10
Benefits of Color on Demand

• Prints both primary and secondary labels on one
  labelreducing errors saving time
• Provides users ability to print more
  informationincreasing patient safety
• Durabrite ink chemical resistance is best in
  industry

Old thermal label
New color on demand label
11
Auxiliary Labels
Manual Process
Automated Process

• Reduces errors

12
Competitive Cost per Label

• Cost of preprinted thermal label ink .5
• Cost of Color on Demand label and ink
• Paper label .5
• Polypropylene 1.0
• Note Applies to volumes of approximately 60 up
  to 2,000 labels per day

13
Business Model for Channel

• Hardware
• Service Contracts
• 70 attach rate
• Software (Middleware)
• Professional Services
• Label design
• Consumables
• Ink
• Media
• Support and Integration

14
Professional Services

• Ink yield and label design consulting
• Improve yields with color design

Fig1
Fig. 2, Design Modification 1 Percent of ink
usage when compared to original label (fig.
1) Print Mode 1 yields 43.79 less ink
used Print Mode 2 yields 42.34 less ink used
Fig 2
Fig. 3, Design Modification 2 Percent of ink
usage when compared to original label (fig.
1) Print Mode 1 yields 64.41 less ink
used Print Mode 2 yields 61.83 less ink used
Fig 3
15
Sales Tools

• 50 Marketing and Support Assets
• Product Training Support videos
• Customer testimonial application videos
• Training slides
• Datasheets
• Media Sample Guide with ink yields
• White Papers 3 ea

16
Sampling of Customers
17
Conclusion

• Leverage HIS/ISV Certifications
• Increasing brand awareness
• Recruiting channel with opportunity message
• Support the channel with tools