Central Compounding

ProfitandLossStatementRevenue FY1 FY2 FY3Low $249,600.00 $299,520.00 $324,480.00Medium $1,965,600.00 $2,358,720.00 $2,555,280.00High $811,200.00 $976,040.00 $1,054,560.00Sterile $0.00 $0.00 $780,000.00Adherence Calls $6,000.00 $8,000.00 $10,000.00Total Sales $3,032,400.00 $3,642,280.00 $4,724,320.00Cost of Goods FY1 FY2 FY3Low $124,800.00 $149,760.00 $162,240.00Medium $1,310,400.00 $1,572,480.00 $1,703,520.00High $561,600.00 $673,920.00 $730,080.00Sterile $0.00 $0.00 $624,000.00Cost of Goods $1,996,800.00 $2,396,160.00 $3,219,840.00Gross Profit $1,035,600.00 $1,246,120.00 $1,504,480.00Operating Expenses FY1 FY2 FY3Rent $4,000.00 $4,000.00 $4,000.00Renovations $50,000.00 $0.00 $10,000.00Supplies $7,000.00 $5,000.00 $5,000.00Bank Fees $32,000.00 $35,000.00 $38,000.00Software $37,000.00 $7,000.00 $7,000.00Accounting $8,500.00 $10,000.00 $11,000.00Attorney Fees $18,000.00 $15,000.00 $18,000.00Delivery Expenses $10,000.00 $11,000.00 $12,000.00Internet/Phone $2,500.00 $2,500.00 $2,500.00Equipment $77,0000 $2,000.00 $16,500Sterile Equipment $0.00 $0.00 $15,000.00Vehicle Expenses $9,000.00 $2,200.00 $2,200.00Payroll Expenses FY1 FY2 FY3Pharmacists $300,000.00 $315,000.00 $325,000.00Technicians/Drivers $108,000.00 $130,000.00 $152,000.00

PCCA Training $16,500 $1,000 $1,000Taxes/Service Fees $79,000.00 $89,000.00 $95,400.00Benefits $125,000.00 $133,500.00 $143,100.00Total Expenses $883,500.00 $762,200.00 $862,700.00

Net Profit $152,100.00 $483,920.00 $641,780.00

Central Compounding Alyssa Lear, Spencer Schlecht, Julianna Slomer, Katie Van Golen

Faculty Coach: Karen Pater, PharmD, CDEIndependent Coach: Dan Asti, RPhPennsylvania Pharmacist Association Achieving Independence Competition 2018

CONCEPT/OPPORTUNITY

LOCATION

MARKETING/STRATEGY

SERVICES OFFERED

FINANCIALS

TECHNOLOGY

Services: • Non-sterile and

hazardous compounding; sterile compounding added FY3

• Delivery to pharmacies by company van on days MWF

• Adherence/refill reminder calls/texts• Call-in counseling with pharmacist• New-to-therapy calls• Open 6 days a week

(7 am-7 pm M-F, 9 am-5 pm Sat)

USP General Chapter <800> becomes official on December 1, 2019 and will have major effects on independent compounding pharmacies. Significant and costly renovations will be required for pharmacies to be compliant, likely causing many to eliminate their compounding service altogether, creating a greater demand for compounding pharmacies and requiring innovative solutions to fulfill patient prescriptions.

Central Compounding is an independent central fill compounding pharmacy that provides surrounding pharmacies with the ability to fulfill compound prescriptions

for their patients.

Our mission: Affordable, personalized, and quality compounds at your local pharmacy

Our Phased Marketing Approach:

USP Compliant Measures:• External ventilation with roof

access, including HEPA filters• Negative pressure between

0.01-0.03 in. WC in HD room • HD storage (including negative

pressure)• CSTDs used for handling HDs

Compounding Software: PK Software

The CompounderRx package

Problem: USP <800> will require

pharmacies to make renovations which may

cost over $100,000

Impact: Remodeling costs have zero ROI and may force pharmacies to eliminate compounding service

Solution: Centralize

compounding services to reduce cost burdens and

generate profit

Demographics: Allegheny CountyPopulation estimate: 1,223,048Number of PCCA-member pharmacies: 32Number of hospitals: 29Number of hospice centers: 21

Central Compounding is located within Allegheny County with easy access to compounding pharmacies that may choose to partner with us.

Central Compounding services our five

founding pharmacy partners during our

opening year.

Central Compounding continues to grow & partner with more pharmacies during

FY2 & FY3.

*No storefront or access to the public

Pharmacy receives

patient Rx for compound

Rx is billed then sent to

Central Compounding

through PK Software

Central Compounding compounds

and packages product

Compound is delivered to Pharmacy

Pharmacy is billed for

compound via monthly

statements

Advertising:• Personal outreach to

local pharmacies• Monthly newsletter for pharmacies• Networking through organizations

(PPA, PSHP)

Central Compounding adds community

sterile compounding during FY3.

Clean RoomNon-Sterile/Sterile RoomHazardous RoomStorageDeliveryOffice Space

Demographics: Washington CountyPopulation estimate: 208,261Number of PCCA-member pharmacies: 2Number of hospitals: 4Number of hospice centers: 3

Rx Fill Process:

Top reasons patients require compounded medications:• Hormone replacement therapy• Pain management/hospice care• Dermatology• Neuropathy• Sports medicine• Veterinary• Pediatrics• Infertility

Pricing of products:• Compounds are categorized based

on complexity and priced based off of a minimum cost for each category

• Ex) Testosterones have a minimum cost of $30 to make

34’x13’

34’x10’

34’x17’12’x24’

12’x16’

16’x40’

The pharmacy will be financed through 2 phases of equity investments from personal funding and our pharmacy partners.

Phase 1:We have allocated $700,000 in investments in exchange for 75% of the company split between our 5 pharmacy partners based on their investment while the remaining 25% is split between us, the 4 pharmacy owners, who will be attributing the remaining $100,000.

Phase 2:After FY2, in order to finance the ability to sterile compound, another round of equity investment up to $100,000 in future pharmacy partners will be acquired.

• Positive pressure between 0.02-0.05 in. WC in sterile room

• Separate HD/Non-sterile/sterile rooms

• PPE garbing area easily accessible

Our initial five founding pharmacy partners are

located in Allegheny and Washington County and are

within 12 miles of Central Compounding.