Medi-Life Cards

Value Proposition

Sustainability

Economics of Business

Expansion Opportunities

Anyone can develop an allergy at any time in his or her life, even without specific risk factors. Yet some people, including asthmatics, children, and those with a history of anaphylaxis, have an increased susceptibility to allergic reactions. The likelihood and severity of experiencing a repeat allergic reaction depends largely upon the type of allergen and the individual's sensitivity to it.

In the self-injection market, consumers are not highly price-sensitive compared with other consumer products. Because of the US third party payor system, many individuals who require a self-injection drug delivery device utilize insurance prescription plans to pay for the majority of the cost.

There is however a large segment of consumers who do not have prescription insurance. This number is expected to rise as the trends in health care continue to move toward Health Savings Plans and consumers continue to take on more responsibility for their medical costs. Considering this, price sensitivity is expected to increase. Because of this and the low cost of manufacturing the device as compared to the current market products (see Section 7), Medi-Life intends to charge 20% less than Dey Pharmaceuticals does for the EpiPen. This will make the device more affordable and individuals more likely to make the purchase.

The economics of the business model based on the cost of activities required prior to launching the device, current market prices for similar devices discounted 20% and projected unit sales for Year 3 are shown below

Possible Impacts to Sustainability

There has been a recent initiative from the biopharmaceutical firm, Genetech, to develop a medication that can alleviate allergies for up to three months. The clinical trials were determined to be too dangerous and were discontinued in January of 2006. Even though research in this area continues to be done, experts agree that these medications only address certain aspects of the allergy and that a cure for the disease is far from discovery. This is an indication that the market for epinephrine injectors will continue to be sustained for many years to come.

Overview
	Year 3
Price	$25
Costs	$9.5
Margin	$15.5
# of Units in 2010	1.8M
Total Gross Profits	$27.9 M
The above numbers have been rounded off for display purposes

Success of the venture will be measured based on meeting the growth, profit and volume expectations presented in the proformas under the Risk & Reward section of the plan.