Correct Dose

Investor Presentation

February 2019

Agenda

Introduction

Market Challenge & Opportunity

Correct Dose Strategy & Approach

Financial Model & Data

Investment Highlights

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Our Kids Are At Risk…

• 84.4% of caregivers made dosing errors in measuring medicine*

• 21% made a large dosing error (>2X the recommended dose)*

• 68% of all errors were too much medicine*

• Packaging cited as the single largest reason for dosing errors*

• Insufficient / inconsistent tools to measure and dispense

• Confusing labeling

• Mismatch between labeling and measuring tools

• Recent recalls have highlighted the issue• August 2018 – Pfizer recalled Children’s Motrin

• November 2018 / January 2019 – Tris Pharma recalled Infant ibuprofen that was private labeled for CVS, Walgreens, and WalMart (Equate brand)

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…but there is a solution

Patented single dose packaging of pediatric OTC medications

• Provides an exact dose specific to a child’s weight

• Eliminates the need to measure and pour

• No cross contamination of syringes and measuring cups

• No messy spills and clean-up

• Safe and convenient

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Introducing Correct Dose

Our Purpose

We help parents keep kids healthy

Our Vision

Innovate and lead a new category of consumer healthcare: Single dose packaging of liquid OTC medications

Our Approach

Educate and engage the market

Sell online direct to consumers

Leverage best of breed technology and partners

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Market Proofpoint:BFS Pharma Manufactured &

Sold Single Dose Allergy Product Using Correct Dose Patented Packaging System

Single Dose Allergy Product Offered

• Private label retail (CVS, Walgreens)

Strong Market Acceptance

• ~40K retail units/month with no marketing

• ~$550K per month retail revenue

• Positive customer reviews

Product ultimately removed from market

• Margin pressure from retail channel

• FDA compliance costs for BFS Pharma

Correct Dose model informed by BFS Pharma

• Direct to consumer maintains margins

• Partner (Plastikon) manages FDA compliance

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Competitive Advantage:-Patented Intellectual Property-Manufacturing Investor & Partner

• Correct Dose holds design and utility patents for unit dose packaging of liquid suspensions

• US 9364393 issued June 14, 2016

• US D710993 issued August 12, 2014

• Patents utilize BFS (blow/fill/seal) technology

• Plastikon, a global leader in plastics manufacturing and BFS packaging, is a founding investor in Correct Dose

• Plastikon has invested inventory and capital machinery, dramatically improving Correct Dose cash flow as the business ramps

• The Correct Dose business plan creates high barriers to entry

• Multiple patents for unit dose packaging

• Capital cost of BFS machinery

• High cost of FDA compliant manufacturing facility

US Patent 9364393 : Dosing System for Analgesic Liquid Suspensions

WEIGHT (lbs) DOSE SIZE (Based on 160mg suspension liquid)6 -11 1.25ml (40mg)

12 -17 2.5ml (80mg)

18 -23 3.725ml (120mg)

24 - 35 5ml (160mg)

36 - 47 7.5ml(240mg)

48 - 59 10ml(320mg)

60 - 71 12.5ml(400mg)

72 - 95 15ml(480mg)

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Correct Dose Model:

Leverage High Value Partners

Market Manufacture Fulfill

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Large and Growing Market Opportunity

• OTC market for Allergy, Electrolyte and Analgesic* is over $7B in 2018

• Children’s market for OTC Allergy, Electrolyte and Analgesic* is $1.1B in 2017 growing to $1.4B in 2021

*Analgesics are pain reducing medications including acetaminophen and ibuprofen

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Target Customer:Millennial Moms

• 17.3 million Millennials in the US are first time Moms• 73.8 million children under age 18 in the US• Millennial Moms in the US workforce

• 70% of women with children under age 18 work• 62% of women who gave birth in last 12 months work

• Working Moms depend on others to dispense medication safely• Day care provider• School nurse• Nanny• Relative

• Millennial Moms want more when buying:• Engagement• Emotional Connections• Simplicity• Trust• Social Consciousness

• Millennial Moms have distinctive buying behaviors • On line and Mobile• Product reviews• Price Comparison

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Marketing & Distribution Strategy

Marketing Strategy

• Execute a multifaceted marketing plan to drive market awareness and engagement• Digital display placements on “mom-centric” sites• Paid search• Targeted social media ads• Influencer outreach through online communities• Product reviews and feedback• PR events and appearances• Thought leadership content and online blogs

• Leverage marketing plan to drive awareness of 3 primary drivers:• Inaccurate dosing of children’s OTC medication is prevalent and represents a

real risk to children• Single dose packaging is now available and ensures safe, accurate, convenient

dosing for liquid OTC medication• Generic OTC medication is equivalent to branded medication in active

ingredients, effectiveness, quality and safety, per FDA requirements

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Distribution Strategy

• Utilize a “direct to consumer” (DTC) model• Sell online via Amazon Healthcare Marketplace and Company website• Control pricing and margin vs. wholesale / retail model• Fulfill exclusively through Amazon for consistent, trusted customer experience• Expand to retail model over time once market demand is established

• Leverage the “Amazon Effect” to overcome perceived challenges in the DTC model• Amazon has entered the healthcare market in a meaningful way

• Partnership with JP Morgan Chase and Berkshire Hathaway to control health care costs

• Acquired online pharmacy Pill Pack• Launched private label OTC brand (Basic Care) in 2017

• Amazon is changing customer buying behavior for OTC medications• Amazon is shifting OTC sales online from brick and mortar retail outlets

• Amazon increased online OTC sales 53% in 2017• Consumers are more willing to buy generic brands on Amazon

• Private label brand Good Sense is top selling OTC brand on Amazon, outselling brands like Advil, Mucinex and Zyrtec

Correct Dose Competitive Landscape

-No single dose offering in market

-Tylenol and generic brands available in multi-dose

bottles

-Available in Children’s and Infant’s packaging (cup dose

vs. syringe dose)

-No single dose offering in market

-Motrin, Advil and generic brands available in multi-

dose bottles

-Available in Children’s and Infant’s packaging (cup dose

vs. syringe dose)

-No single dose liquid concentrate in the market

-Pedialyte and generic brands available in multi-

dose bottles

-Pedialyte offers single dose powder

-No single dose offering in market

-Benadryl and generic brands available in multi-dose

bottles

Acetaminophen Ibuprofen

AllergyElectrolyte

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Investment Highlights

Expansion Opportunities

• Correct Dose children’s cough and cold• Correct Dose children’s gas drops• Correct Dose children’s & adult suppository• Correct Dose children’s & adult eye care• Correct Dose adult hydration / electrolyte• License packaging to existing OTC brands• License packaging to prescription brands• Distribution to physicians and hospitals• Distribution in retail outlets• Expansion outside US markets

Investment Value

• Creating a new high growth consumer category based on a patented system

• Experienced leadership team: financed, grew and sold technology businesses

• Capital efficient model with strong cash generation

• Variable, success based expense model enables efficient cash management • Inventory• Marketing• Fulfillment

• Best of breed technology and partnerships enable capital efficient scale and reduced execution risk

Exit Strategy

• Strategic Sale• Amazon• Walmart• Johnson & Johnson• Perrigo• Teva• Mylan NV

• Financial Sale• Private Equity

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