1

Dakota Drug Sales Meeting The Past & The FutureMarch 24, 2016

2

Nipro Diagnostics Changes

• Home Diagnostics Sold to Nipro Corporation February 2010• Nipro Corporation sells diabetes unit to Sinocare Health

January 7, 2016• New names announced for the diabetes unit February 1, 2016

now Trividia Health• Manufacturing to remain in Ft Lauderdale, FL, with circuitry

still manufactured in Formosa• Sinocare is new to the US market currently has @ 40% of the

Chinese bgm market.

3

DAK Drug Sales TRUE Test Units 2014

• Q1 2014 3,798 vials• Q2 2014 5,225 vials• Q3 2014 5,646 vials• Q4 2014 3,726 vials

• Total units for 2014

18,396

4

DAK Drug Sales TRUE Test Units 2015

• Q1 2015 6,208 units• Q2 2015 5,466 units• Q3 2015 6,018 units• Q4 2015 4,872 units

• Total units for 2015

22,564

5

Sales Growth 2015

• 2014 Total units 18,396

• 2015 Total units 23,588

Percent Growth

22%

6

Diabetes Testing Market US - Dollars

Gross Dollar Sales Test Strips

• Roche -16%

• Lifescan -10%

• Abbott - 3%

• Bayer* - 3%

*Sold to Panasonic & KKR June 2015 new name Ascensia.

7

Diabetes Testing Market Units 2015

Unit sales 2014 vs 2015

Lifescan +10%

Roche - 3%

Abbott + 7%

Bayer + 4%

Trividia Health + 4%

8

9

Diabetic Testing Payer Sources

• Commercial insurance 47%

• Medicare B 16%

• Medicare D 16%

• Managed Medicaid 13%

• FFS Medicaid 5%

• Cash 3%

10

Diabetic Testing Market Trends

• New diabetic population continues to grow

• Diabetics testing appears flat if measured by sales

• CMS changes in Med B 3 years ago reduced the number of testers

• In some cases retail pharmacies have chosen to give strips away in order to retain pateints

11

Market Place Changes

• Infopia announced it is closing effective Feb 2016• Logimedix closing its testing supply operation effective May 1,

2016• Prices continue to fall with regard to test strips• USA Today attacks PBM pricing in an article June 22• New diabetic population continues to grow• Diabetic testing is flat according to sales of supplies• Some stores are giving away testing supplies to retain their

diabetic patient segment

12

Market Disrupter

• CMS changes to Med B nearly 3 years ago impacted retail store delivery and price

• Effective July 1, 2016 CMS has announced another reimbursement change form $10.40 per 50 count vial to $8.32

• It was announced as a bid award for mail order but as last time to pricing was put in place for retail pharmacy making claims for Med B diabetes testing supplies

• This change will impact manufacturers, retail operations and patients

13

Market Disruption = Opportunities

• Pricing on test strips• Ancillary products/not reimbursed• Transparency with customers• Diabetes clubs – circle the wagons• New products• Solutions? TBD• Can I help? Free meters etc Roger Anderson 847-809-1775 cell randerson@trividiahealth.com

14

Unsi num duciureribus magnatem quamet aperum qui et tatusa pel maximoditae prorpor.

1 Ovidis mos.2 Sumque si sit et arum.3 Quo iscideribus.

15

Category Category Category

1.

2.

3.

16

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

17

Category 1 Category 2 Category 3 Category 40

1

2

3

4

5

6

Series 1Series 2Series 3