BLOCKMEDX

SECURE ELECTRONIC PRESCRIBING AND PREDICTIVE ANALYTICS to Combat Prescription Drug Fraud, Abuse, and Non-Adherence

CONFIDENTIAL

TACKLING THE OPIOID EPIDEMIC HEALTHCARE PROFESSIONALS, POLICY EXPERTS, AND DEVASTATED FAMILIES AND COMMUNITIES AGREE:

the opioid epidemic is the single greatest health emergency facing the United States.

DID YOU KNOW...

Staggering Costs

5% of all hospital admissions due to opioid overdose

Opioid addiction costs on average $10-15k more per health insurance member

500,000 are projected to die in the next 10 years

$30 billion in direct costs and $45 billion in economic losses

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$30 BILLION DIRECT HEALTHCARE COST Yearly Opioid Epidemic Cost Economic impact due to healthcare, criminal justice, and workplace costs

$28.9 Billion or 38.5% due to direct healthcare costs (ED visits, hospitalizations, substance abuse treatments)

Solution https://www.ncbi.nlm.nih.gov/pubmed/2819 1702; Hsu DJ1, McCarthy EP1, Stevens JP1, Mukamal KJ1.Hospitalizations, costs and outcomes associated with heroin and prescription opioid overdoses in the United States 2001-12. https://www.ncbi.nlm.nih.gov/pubmed/2819 1702;

“The rapid and ongoing rise in both numbers of hospitalizations and their costs suggests that the burden of prescription opioid overdoses may threaten the infrastructure and finances of US hospitals.�

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CONTRIBUTORS

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What if there was a next-generation smart software solution for a fraction of the cost that can help prevent this crisis from getting worse?

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HEALTHCARE INFRASTRUCTURE PROJECT

Focusing on prescription drug fraud, abuse, and non-adherence.

BlockMedx is building a next-generation smart e-prescribing and analytics ecosystem that can be used anywhere in the world to send and receive electronic prescriptions, predict patient risk behaviors, and automate micropayment incentives using the token economy to incentivize healthy behavior.

PRESCRIPTION FRAUD… Blockchain technology allows BlockMedx to cut out middle-men in the current e-prescribing industry that drive up costs

✓ Trustless two-sided verification ✓ Significantly lower cost ✓ Extremely secure ✓ Massively scalable ✓ Real-time, distributed records ✓ Big data analytics

#ransomware attack on Allscripts has taken down our e-prescribing, EPCS and some other services! Yikes!! At least we don’t use their hosted application I hear many hosted practices couldn’t access their EMR yesterday. Talk about a shutdown! — Yvette Crabtree (@YCrabtreeMD) January 19, 2018

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PRESCRIPTION ABUSE‌ Drug analytics use predictive models and AI risk profiling to predict events such as ED visits and overdoses before they occur!

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PRESCRIPTION NON-ADHERENCE‌ Our blockchain technology and established network controls for providers and patients allows for a seamless token economy that allows payors and value based healthcare systems to connect payment based incentives with smart contracts.

Poor medication adherence costs

$300 BILLION in annual health spending Source: New England Healthcare Institute.

Payment based incentive programs created on the BlockMedx platform using MDX tokens.

Example codified patient engagement: 1. Diabetic patient checks glucometer using IoT device which transmits data to BlockMedx App (or iOS healthkit if activated).

2. If measurement is within normal range for verified user, then smart contract automatically dispenses MDX tokens 3. Literature has shown payments as low as $1.4/day have increased medication adherence two fold in the diabetic population!

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MVP

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BUSINESS MODEL (SAAS) $/PROVIDER FREE

Patient

■ ■ ■ ■

Medication Reconc.

Patient engagement Co-pays Discounted drugs

FREE

■ Meets EPCS regulations ■ Real-Time drug monitoring database

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Provider

2

Payor

$/MEMBER

■ No additional verification req.

■ Workflow optimization Pharmacy

3 Yearly recurring maintenance fee

■ Value-based analytics & patient engagement for medication adherence

State-Level (US) PDMP + Analytics ■ Reduced cost PDMP compared to existing software in the market

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MARKET DRIVERS Market Drivers: 1. 80% of scripts for controlled substances are still on paper 2. EPCS mandated in NY, ME, VA, AZ, NC, RI, CT and many more bills in legislation across the US prompting new demand for EPCS solutions 3. Costs associated with the opioid crisis are continuing to increase ~25% YoY prompting payors to look for preventative solutions

15 CENTS/ TRANSACTION

70% Savings 1

Provider*

2

Payor

$1/MEMBER

*If other two targeted revenue streams become sufficient, BlockMedx may be able to eventually offer free e-prescribing software in the market

99% Savings 11

TRACTION ■ MassChallenge Texas Finalist ■ Named one of the Top 10 Startups in Blockchain by PCMag ■ Included in the 2018 Joint Economic Report to Congress as an innovative way to track opioid prescriptions with new technology ■ Functional MVP ready for clinical validation ■ Supported by $320K in cloud credits ■ Founding member of UT Dell Medical School/City of Austin Blockchain Working Group ■ Admitted to off-cycle UT Dell Health Catalyst program to co-develop analytics ■ Admitted to Texas Venture Labs Accelerator at UT McCombs Business School for Fall 2018 ■ Admitted to Capital Factory Accelerator Fall 2018

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TRACTION Secured partnership with Government of Taiwan to build e-prescribing and prescription monitoring (press release coming soon)

Active engagement with Government of Australia State-level interest in United States â– CO, WA and KY have all shown interest in funding pilots for next-generation PDMP + analytics

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SEED MONEY (FIRST MONEY IN)

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MEET THE TEAM Michael J. Brunner, PharmD Founder & CEO ■ Pharmacy management and process expert ■ Doctor of Pharmacy from University of Iowa; licensed to practice in 2 states

Alexander Antoniou, MD MBA Founder & Chief Medical Officer ■ Former Healthcare Analytics management consultant at McKinsey ■ Board-certified physician and Johns Hopkins fellowship trained Informatics specialist ■ MD from Tufts, MBA from the Carey School of Business at Johns Hopkins 15

MEET THE TEAM Dave Hoover Lead Blockchain Advisor ■ Formerly with ConsenSys, Groupon, IDEO, and Raise ■ Successfully co-founded several tech startups ■ Board member of Code Platoon; Founder of devbootcamp

Jim Kyung-Soo Liew, Ph.D. Assistant Professor of Finance, Johns Hopkins Carey Business School ■ Founder of SoKat.co Machine Learning and Artificial Intelligence ■ Professor of blockchain curriculum at Johns Hopkins ■ Expert in Big Data ML/AI 16

MEET THE TEAM

Mathew Mitchell

Mario Hoyos

Blockchain Engineer

Frontend Engineer

Danny Holland

Leila Kassiri

Blockchain Engineer

Backend Engineer 17

Thank You www.blockmedx.com @blockmedx t.me/blockmedx michael@blockmedx.com alexander@blockmedx.com