MediCircle

We introduce employer healthcare innovations to the world

What’s the issue?

• Billions of dollars worth of unused medications in the United States are simply thrown away

• Meanwhile, patients and plan sponsors shoulder an ever increasing burden of medication costs

• 29% of medication non-adherence, which drives poor outcomes and costly acute episodes and complications, is estimated to be due to cost

Introducing

What they do

MediCircle redistributes unused medications to save patients and plan sponsors significant dollars while also helping improve access to much needed medication

• Patients save on average $1,900 per month and plan sponsors save on average 69.4% on specialty medications accessed via MediCircle

• ~$3M in medications have been recertified since January 2023

How they do it

MediCircle saves health plans and patients significant money by reclaiming and redistributing unused medications that would otherwise go to waste.

• MediCircle works with hospitals and specialty centers willing to donate unused medications

• By partnering with PBMs, MediCircle can match requested medications to their current inventory and ship medication to patients at no charge

• They currently charge $100 - $6K per monthly dispense

Who they are

• Founders: Jack Shaeffer, Eliza Sternlicht

• Headquarters: Texas

• Employee Count: 4

• Investors: Techstars, Various Angels

• Funding Status: Unstated funding to-date; to open round after Techstars program

Who else is doing this?

• SIRUM

• SafeNetRx

• Various state health organizations

Our thoughts

SUCCESS DRIVERS

• Market Opportunity: Estimates of that range from $5B - $50B of unused medications represents a significant unmet need that is expected to expand amidst America’s aging population and continued innovation out of biopharmaceutical companies.

• Top Industry Concern: Medication costs are a top concern of health plans, particularly heightened by the advent of novel, increasingly costly biopharmaceutical innovations.

• High Engagement Incentive: The elimination of OOP spend ($1,900 saved monthly per patient on average) is a significant, inherent incentive to drive high utilization, evidenced by MediCircles 88.9% uptake rate among eligible patient populations from existing customers.

POTENTIAL ISSUES

• Logistics challenges: MediCircle will need to procure and distribute sufficient inventory across many different medications to match expected demand from diverse patient populations.

• Licensure processes: Currently MediCircle has secured licensure in Texas and plans to expand nationally, which will be an expectation of large self-funded employers and PBMs.

• Potential competitive exposure: MediCircle has patents in place for its recertification process; however, more diligence will need to be done to understand the potential risk of other established and new companies gaining footholds in other markets.

Your thoughts