Custom Health · TSX:CHLT
Custom Health — SPAC Merger (January 2024)
39 slides from Custom Health's SPAC merger presentation, Jan 8, 2024
Slide 1: Stop guessing with medication - Investor Presentation January 2024
Exhibit 99.1 Stop guessing with medication INVESTOR PRESENTATION JANUARY 2024 https://customhealth.com/
Slide 2: Disclaimer & Forward-Looking Statements
Disclaimer & Forward-Looking Statements ABOUT THIS PRESENTATION This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) between Beren
Slide 3: Disclaimer & Forward-Looking Statements (Continued)
Disclaimer & Forward-Looking Statements (Continued) NO OFFER OR SOLICITATION This Presentation does not constitute (i) a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed Business Combination or (ii) an offer to sell, a solicitation of an
Slide 4: Disclaimer & Forward-Looking Statements (Continued) - Trademarks
Disclaimer & Forward-Looking Statements (Continued) Trademarks BACA and the Company has proprietary rights to trademarks, service marks and trade names used in this presentation that are important to its business, many of which are registered under applicable intellectual property laws. This present
Slide 5: Today's Presenters
Today’s Presenters BACA Custom Health Jeffrey Berenson Mohammed Ansari Amir Hegazy Shane Bishop Rahul Chopra Cathy Kuhn Mustafa BACA Chairman, BACA CEO, Berenson BACA CFO, CEO Chairman VP Clinical Offerings Muhammad Berenson Founder & Senior Managing Berenson Managing VP Engineering CEO Partner & Pr
Slide 6: BACA Chairman, Founder & CEO Jeffrey Berenson
Chairman, Founder & CEO Over 30 years of experience structuring, financing and § Co-founded Berenson Minella & Company in 1990, the predecessor firm to Berenson & Company negotiating M&A transactions representing well over $250 billion of public and private transaction value; including recent § Prio
Slide 7: BACA Investment Criteria
BACA Investment Criteria We are drawn to teams that “live and breathe” their end-markets and have a unique understanding for the current and future needs of their clients Passionate Management We recognize that execution capability is critical and look for teams with demonstrable past success We see
Slide 8: Table of Contents
Table of Contents EXECUTIVE SUMMARY PLATFORM OVERVIEW FINANCIAL AND TRANSACTION OVERVIEW
Slide 9: Executive Summary
Executive Summary
Slide 10: Mission Statement & Vision
Mission Statement & Vision MISSION Improve patient outcomes by organizing and acting on real-time health data and insights VISION Transform the care experience for people at home 10
Slide 11: Custom Health at a Glance
Custom Health at a Glance Vertically integrated virtual care and medication adherence platform, serving patients through company- owned and network pharmacies, powered by proprietary AdhereNet® software By the Numbers Monitored med doses safely taken at home Med adherence Custom Health In-house (1)
Slide 12: The Problem
The Problem (1) 68 Million adults in the U.S. alone have multiple chronic conditions and rely on medication (2) Remembering to take medication on time and as prescribed is difficult: 75% of people in the U.S. have trouble following their medication schedule. Missing doses can be harmful, worrisome a
Slide 13: Custom Health Key Investment Highlights
Custom Health Key Investment Highlights Mission-Critical Offerings Large & Growing TAM Resilient Barriers to Entry (2) § Comprehensive managed care solution § 68 million U.S. adults are diagnosed with § Proprietary software, AdhereNet, improves patient health outcomes (98% multiple chronic condition
Slide 14: Mission-Critical Offerings
Mission-Critical Offerings Custom Health provides a vertically integrated, comprehensive care solution that enhances medication adherence and patient outcomes Digital Virtual Care Key Capabilities Custom Health Device Vendors Pharmacies Organizations Owned Automated Pharmacies In-Home Automated Medi
Slide 15: Market: Large & Growing TAM
Market: Large & Growing TAM Custom Health’s comprehensive tech-enabled care solutions serves a massive market with significant tailwinds Addressable Market Key U.S. Macro Trends $1.9 trillion Total Addressable o Remote Patient Monitoring (“RPM”) Adoption: In 2018, the Center for Market TAM Medicaid
Slide 16: Resilient Barriers to Entry
Resilient Barriers to Entry Comprehensive Managed Care Solution ü Vertically integrated pharmacy and clinical operations serving poly-med patients, powered by proprietary software ü Improved patient experiences and outcomes which result in lower total cost of care for healthcare institutions Proprie
Slide 17: Defined M&A Playbook
Defined M&A Playbook Add-on acquisition strategy focused on strategic and accretive pharmacy hubs (1) M&A Playbook Success Scaling Acquired Pharmacy Revenue Management leverages network pharmacy 1 1.9x relationships to identify acquisition targets in strategic locations with large patient population
Slide 18: Multiple Avenues for Long-Term Growth and Margin Expansion
Multiple Avenues for Long-Term Growth and Margin Expansion Step 1: Roll-out existing contracts and pilots 1 Step 2: Expand into new territories with existing payors and continue to add additional payors and systems, 2 including shared-risk models Step 3: Continue M&A of strategic pharmacy hubs to ca
Slide 19: Passionate Management & Team
Passionate Management & Team Co-founder & Chief Executive Officer § Over 20 years of experience in pharmacy and technology fields § Prior to founding Custom Health, Shane founded Catalyst Healthcare, a pharmacy software company Custom Health’s 190-person team “live and breathe” their end that includ
Slide 20: Platform Overview
Platform Overview
Slide 21: Custom Health's Solution Powered by Proprietary Software
Custom Health’s Solution Powered by Proprietary Software Custom Health’s tech-enabled platform, powered by proprietary software, AdhereNet®, improves adherence outcomes for patients while reducing costs by keeping them safe at home Tech-enabled platform solving the legacy pain points faced by patien
Slide 22: By the Numbers
(1) By the Numbers Saskatoon, SK Daily health Patient insights average age Chilliwack, BC Langley, BC 75,000 ~53 (4) Indiana Toronto, ON Monitored med Advanced doses safely (4) Ohio certifications taken at home (4) Los Angeles, CA (2) 20+ 7.7 million Nashville, TN in 2023 Spoken Pharmacy Hub Med adh
Slide 23: Company Timeline
Company Timeline 2020 2021 2022 – Present ▪ Secured $20 million in funding to ▪ Raised Seed Funding and ▪ Acquired Custom Health’s long-time technology optimize prescribed medication participated in multiple trials in partner, Catalyst Healthcare, a leading and accelerate journey of Canada to establ
Slide 24: Integrated Platform
Integrated Platform We own the strategic building blocks that support an Automated hub In-home Clinical integrated platform to Pharmacies Technology Oversight manage the Attract & enroll high Simple to use & life- 190 in-house journey of a pill value patients changing pharmacist-led team Personalize
Slide 25: Illustrative Onboarded Patient Unit Economics
Illustrative Onboarded Patient Unit Economics (1) Patient Channel Double Stack Revenue Opportunity Supports Attractive Unit Economics Tech Revenue $1000 - $1800 Revenue Health Plans, Rx Revenue $7200 Medicare, Medicaid (2) Gross Profit Gross Profit (Margin %) $2970 (36%) to $3770 (42%) Patients dire
Slide 26: AdhereNet Software
AdhereNet Software Proprietary software powers Custom Health’s various lines of business at its own and network pharmacies along with certain long-term care facilities Custom Health pharmacy hub In-house clinical team High margin patient processing & quality assurance, Custom Care for RPM/CCM workfl
Slide 27: Strategy for AI-enabled Clinical Care at Scale
Strategy for AI-enabled Clinical Care at Scale 1 2 3 4 Build Proprietary Health Create Operational Build Precision Medicine Develop Autonomous Care Dataset Efficiencies Capabilities Plan Tool § Real-time monitoring of § Automation of clinical tasks § Identification of gaps in care§ Customized, fully
Slide 28: Team Overview
Team Overview Shane Bishop Cathy Kuhn Daniel Cody Mustafa Muhammad Michael Halligan Chief Executive Officer Clinical Programs Solution Delivery Engineering Sales Jane Garrison Teresa Pitre Devin Elias Michael Barbary Kasumi Oda Orlando Pharmacy Hub Toronto Pharmacy Hub Saskatoon Pharmacy Hub BC Phar
Slide 29: Financial and Transaction Overview
Financial and Transaction Overview
Slide 30: Proposed De-SPAC Transaction Overview
Proposed De-SPAC Transaction Overview (2) Transaction Highlights Implied Sources & Uses Sources ($mm) Uses ($mm) § $261 million pro forma enterprise value Transaction Expenses / (3) (1) Cash in Trust $11.2 $16.5 § Implied pre-money equity value of $185 million (5) Acquisition Financing § Implied pro
Slide 31: Financial Profile
(1)(2) Financial Profile (1) (1)(3) Revenue Adjusted Gross Profit $USD in Millions $USD In Millions $42 to $45 $135 to $140 $67 to $72 $47 to $48 $15 to $16 32% 95% $21 $6 50% $3 123% 22% 12% 13% (2) 2022A 2023E 2024E 2025E 2022A 2023E 2024E 2025E (1)(4) (5) Adjusted EBITDA Health Tech Patient Count
Slide 32: 2023E-2025E Revenue and Gross Profit Bridge
2023E-2025E Revenue and Gross Profit Bridge (1) Revenue Commentary $USD in Millions o Current: $135 to $140 $1 to $1 $53 to $54 § Gross Margins have been burdened by the following: o Custom Health has procured a deep bench of skilled pharmacy-level human resources, in preparation for $14 to $14 $67
Slide 33: Near-Term Patient Population Pipeline Supports Growth Forecast
Near-Term Patient Population Pipeline Supports Growth Forecast Custom Health’s patient pipeline is driven by pilots and contracts with large healthcare organizations that are expected to be rolled out over the next 24 months across the U.S. and Canada (1) Addressable Patient Population Commentary Al
Slide 34: Attractive Long-Term Financial Profile
(1) Attractive Long-Term Financial Profile Long-Term Organic Financial Algorithm (1) Revenue Growth 30%+ (1) Gross Profit Margin 30-45% (1) EBITDA Growth 40%+ (1) EBITDA Margin 25% Additional Potential Upside from Acquisitions ICHOM: International Consortium for Health Outcomes Management (1) The pr
Slide 35: Valuation Benchmarking
Valuation Benchmarking 2023 Median 2024 Median 0.98x 0.89x 0.74x 0.59x 0.50x 0.35x 0.29x 0.27x 0.29x 0.13x 0.12x 0.27x 0.09x 0.09x 0.08x 0.03x 0.03x 0.02x 0.00x 0.00x 57% 49% 38% 33% 33% 32% 31% 29% 33% 19% Source: Factset & public company filings, as of 01/03/2024 market close (1) An economic theor
Slide 36: Operational Benchmarking
Operational Benchmarking 2024 Median 2025 Median 95% 50% 30% 31% 27% 19% 19% 15% 11% 11% 11% 9% 8% 8% 6% 5% 11% 5% 0% 10% 46% 45% 31% 30% 29% 28% 7% 19% 8% 16% 12% 11% 14% 13% 16% 14% 0% 3% (1%) 2% Source: Factset & public company filings, as of 01/03/2024 market close (1) Excludes one-time legal ex
Slide 37: Risk Factors
Risk Factors All references to the “Company,” “we,” “us” or “our” in this presentation refer to the business of the Company. GENERAL RISKS • Downturns or volatility in general economic conditions could have a material adverse effect on the Company’s business, financial condition, results of operatio
Slide 38: Risk Factors - Risks Related to the Business Combination
Risk Factors RISKS RELATED TO THE BUSINESS COMBINATION • The Business Combination may disrupt current plans and operations of the Company. • If the Business Combination’s benefits do not meet the expectations of investors or securities analysts, the market price of BACA’s securities or, following th
Slide 39: Key Contacts
Key Contacts Custom Health Berenson Acquisition Corp. I Shane Bishop Amir Hegazy Chief Executive Officer Chief Financial Officer [email protected] [email protected] irlabs Alyssa Barry Investor Relations [email protected]