Healthcare UpdateVartech 2011

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Agenda

• Industry Trends• Healthcare Strategy

– HIS Certifications– Target Markets

• Channel Message– Business Model

• Current Sales Tools

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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

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30%

33%

34%

28%

29%

30%

31%

32%

33%

34%

% P

atie

nt

Inci

den

ts

2009 2010 2011

Year

Trends in Patient Incidents Involving Compounding Errors

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

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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

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Strategy: HIS Product Certifications

Current HIS/ISV CertificationsTier One HIS:• McKesson• Sunquest• Cerner Etreby• MediTechTier Two ISV:

– Baxa– Merge– Trimor– NEPS– RxScan

MEDITECH

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Strategy cont. Target Market Color

• Hospital Inpatient Pharmacy– Includes OR/Anesthesia

• Pharmacy Central-Fill– Mail Order

– Distribution Refill

• Independent Compounding Pharmacies

Hospital

Warehouse

Pharmacy Dist. Refill

Independent Compounders

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Strategy cont. Target Market P60

• Leverage HIS certifications:– Sunquest

– Meditech

• Hospital Departments:– ER

– Patient Care

– Laboratory

– Others…

• Penetrate bedside specimen collection labeling through certifications

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Channel Opportunity with Color

• Benefits of Color on Demand

• Competitive Cost per label

• Business Model for Partners

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Benefits of Color on Demand

• Prints both primary and secondary labels on one label—reducing errors & saving time

• Provides users ability to print more information—increasing patient safety

• Durabrite ink chemical resistance is best in industry

Old thermal label New color on demand label

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Auxiliary Labels

Manual Process

Automated Process• Reduces errors

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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

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Business Model for Channel

• Hardware

• Service Contracts– 70% attach rate

• Software (Middleware)

• Professional Services– Label design

• Consumables– Ink

– Media

• Support and Integration

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Professional Services

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

Fig. 2, Design Modification 1Percent of ink usage when compared to original label(fig. 1):Print Mode 1 yields 43.79% less ink usedPrint Mode 2 yields 42.34% less ink used

Fig. 3, Design Modification 2Percent of ink usage when compared to original label(fig. 1):Print Mode 1 yields 64.41% less ink usedPrint Mode 2 yields 61.83% less ink used

Fig 2

Fig 3

Fig1

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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

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Sampling of Customers

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Conclusion

• Leverage HIS/ISV Certifications

• Increasing brand awareness

• Recruiting channel with opportunity message

• Support the channel with tools