DisposeRX Investment

DisposeRX Investment

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.

INCOMPLETE

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.

INCOMPLETE

INEFFICIENCY

Success of this relies on market saturation and almost monopoly relationships being formed with pharmaceutical companies and/or responsible parties.  Commoditization seems inevitable.

RED

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.

CAVEATS

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.

Known as the Business Godfather, Chris Koomey started his first business when he was 19 and since then has opened up businesses and helped others open up and grow business as a business owner, business consultant and business attorney. Chris helps growing businesses in fields ranging from education to technology. Chris graduated from the Marshall Wythe School of Law at the College of William and Mary after receiving BA & MA degrees from the University of Chicago and an MS degree from George Mason University. Business Godfather, LLC was established in 2012 to bring together all the aspects of Chris's experience and background.