Company Overview
American Healthcare Capital is proud to exclusively represent a tech company for sale focused on security and fraud prevention within drug supply chains. Founded in 2012, this company specializes in providing DEA-compliant storage and supply chain solutions that prioritize the safety and security of pharmaceuticals. The organization’s solution protects the pharmaceutical supply chain through innovative hardware, software, access control systems, and consulting services. The Company is a leader in pharmaceutical supply chain security, offering patented, DEA-compliant solutions for secure storage, access control, and drug diversion prevention.
The Company generates revenue through the sale of DEA-compliant safes, access control systems, subscription-based tracking solutions, and consulting services. It seeks to sell its Safes and Vaults hardware systems to focus on the development of AI-driven analytics, data services and consulting.
Traction and Financial Performance
The Company’s safes and vault revenue has shown significant year-over-year growth, increasing by 50% from $708,000 in 2022 to $1,058,000 in 2023. Revenues in the past two years are in the $600,000 range because the company has focused on software solutions with broader applications. The gross margin of the safes and vaults business is in the 60% to 70% range.
The Market
Addressing a $16.5 billion U.S. market of controlled pharmaceuticals, the Company serves over 600 clients, including pharmacies, healthcare providers, government agencies, and emergency services providers.
The Problem
The pharmaceutical industry faces significant challenges related to drug diversion, where drugs are stolen from the lawful supply chain. This problem results in economic losses, with an estimated $72 billion lost annually due to drug diversion. Additionally, the healthcare industry incurs $120 billion in lost productivity and between $50 and $150 billion in litigation and opioid settlements. Inefficiencies in the supply chain have also led to $25 billion in surplus inventory being wasted or expired.
The Solution
The Company provides a comprehensive suite of safes and vaults for manufacturers, distributors, and suppliers, backed by high brand recognition, to ensure compliance with DEA, FDA, and state regulations.
Exit Plan
The Company’s founder and management team have deep expertise in compliance and applying that knowledge to meet regulatory requirements. They are willing to make that knowledge available to the acquiring party. The current SVP of Corporate Development would be willing to transfer with the acquisition.
Asking Price
The price and structure will be determined through diligence and negotiations.
