DisposeRX Investment Presentation Review
DisposeRX is a development stage company focused on the safe disposal of a leftover and/or expired drugs by providing a patented drug disposal technology. DisposeRX asserts pharmaceutical companies have some responsibility to ensure safe disposal of unused prescriptions. DisposeRX appears to have strong and experienced management.
DisposeRX is seeking to raise $500K.
DisposeRX INNOVATION AREA: Healthcare
DisposeRX has identified a niche in the healthcare space. More research is necessary to determine the level of responsibility on pharmaceutical companies to address the issue to determine the viability of the opportunity. If responsibility is not mandated and associated with fines or other costs, this could be a classic case of failure of the commons as identified by Coase 50 years ago.
SIZE OF THE OPPORTUNITY
DisposeRX asserts there are 3 billion prescription vials issued each year in the US. Their solution retails for $0.11 per bottle so on its face this could potentially be a $300 million opportunity. Absent a strong mandate the opportunity is likely much smaller than that.
Success of this relies on market saturation and almost monopoly relationships being formed with pharmaceutical companies and/or responsible parties. Commoditization seems inevitable.
BUSINESS GODFATHER COMMENTARY
Full evaluation of DisposeRX requires knowledge of existing regulatory structure regarding disposal of pharmaceuticals. Even assuming favorable analysis in that area the risk of commoditization is too great without some avenue to obtain cash faster as an investor – perhaps a piece of each product sold by the company. Absent that there is not a clear path to this being an investable business based on what was presented.
This Presentation Review is my opinion based on extremely limited information – a 1 page write up and 5 minute presentation. My assessment might change if I had conducted more thorough due diligence. I provide this assessment for educational purposes in applying the Business Godfather Investable Business Analysis. Entrepreneurs are always swimming against a universe of people who may not fully understand their true business innovation and that may apply to me.