Mr. Christopher Moreau reports

MIRACULINS REPORTS ON POSITIVE RESULTS AS THE FIRST PHARMACY PILOT FOR THE SCOUT DS(R) DIABETES SCREENING KIOSK NEARS COMPLETION

Miraculins Inc.'s Scout DS diabetes screening kiosk pilot being conducted in partnership with Lovell Drugs Ltd. and Pear Healthcare Solutions Inc. has to date identified 145 individuals, or 41 per cent of those screened in just 16 days, to be at elevated risk for prediabetes or Type 2 diabetes. All customers who were identified as being at risk by the Scout DS were recommended to follow up with their physicians for confirmatory blood testing.

The company also reports that pilot participants were pleased to complete a touch screen survey while seated for their complimentary and non-invasive Scout DS diabetes test, which resulted in the acquisition of valuable and traditionally difficult to procure consumer information. The survey was specifically tailored to help identify opportunities for the provision of enhanced health care and customer service, while isolating pathways for the pharmacy to potentially increase its revenues related to diabetes care and corresponding lifestyle change management. Both the screening and survey were preceded by participating individuals signing a consent form.

"Based upon the willingness of pharmacy pilot customers to complete a survey while being tested, we believe that our diabetes screening and consumer survey kiosk may also have the potential to be integrated into retail store operations with large customer bases in other major sectors, as well as into shopping malls, airports and a variety of public settings," said Paul Moreau, vice-president, sales and marketing, for Miraculins. "Retailers, organizations and marquee brands in North America and abroad highly value actionable consumer information, which in practice is very hard to get. We believe they could use our kiosk to procure that data and deliver a brand message, while providing an important, complimentary health care screen to their customers for what is now being described as the fastest growing disease in history."

As a result of these promising pilot results, the company plans to continue to develop a business model for the pharmacy sector (adaptable for non-pharmacy applications as well) where retailers could lease the turnkey and fully staffed Scout DS diabetes screening and consumer survey kiosks on a weekly, monthly or longer-term basis. As individuals with normal Scout DS results are recommended to be retested annually, the kiosk has a recurring customer contact and outreach feature built-in. Additional pilots for the pharmacy sector are being planned.

Scout DS diabetes screening kiosk pilot -- key findings

To date the pilot has screened and surveyed over 350 individuals at two pharmacy locations in Southern Ontario, and it is anticipated that up to 500 individuals will visit the kiosk by the pilot's conclusion in mid-March. A review of the data supports the value of the Scout DS kiosk in providing both a public health service and a tool to help pharmacies achieve greater performance:

• Type 2 diabetics -- 10 per cent (35 individuals) were identified by the Scout DS as being at risk for Type 2 diabetes. Individuals who went on to be diagnosed by their doctor could represent a potential continuing revenue stream to the pharmacy of up to $3,000 annually for medication prescriptions and other diabetes-related products such as needles, test strips, sterile dressings, foot creams, bandages and so on.(1) In addition, diabetics often have co-morbidities that drive additional spending for conditions that may include high blood pressure, fluid and electrolyte disorders, chronic pulmonary disease, anemia and kidney failure, potentially adding to pharmacy revenue streams.(1)
• Prediabetics -- 31 per cent (110 individuals) were identified by the Scout DS as being at risk for prediabetes. Individuals who went on to be diagnosed by their doctor could represent an annual revenue stream to the pharmacy for medication prescriptions and other prediabetes-related products designed to stop or slow down progression of the disease.(1) Fifteen per cent to 30 per cent of prediabetics will develop Type 2 diabetes within five years(2), and will be in need of continuing treatment products and services provided by the pharmacy.(1)
• Medication reviews -- 13 per cent (29 individuals from a smaller sampling of 224), indicated they were taking three or more prescription medications, without having had a formal medication review with a pharmacist within the last year. In most Canadian provinces, these patients can receive a free medication review annually, which the pharmacy is reimbursed for by the provincial government. In Ontario, the reimbursement amount is $60 per patient (more if they are diabetic), which could represent another potential annual revenue stream to the pharmacy if these customers were confirmed for medication reviews.
• New prescriptions -- 41 per cent (144 individuals) indicated they had never had a prescription filled at the pharmacy, underscoring the opportunity for acquiring new prescription business from customers presenting in store.
• Prescription consolidation -- 19 per cent (67 individuals) indicated they had their continuing prescriptions filled at more than one store, underscoring the opportunity to generate increased revenue by migrating customer prescriptions over from other pharmacies.
• Dietary and fitness counselling -- 56 per cent (197 individuals) indicated they were interested in receiving dietary or fitness counselling in the future, while 69 per cent (244 individuals) indicated they did not have a gym or fitness club membership. These individuals would be candidates for complementary service offerings.

Additional survey findings that underscore the opportunity for the pharmacy to enhance customer health care and service, build store traffic, increase its retail revenue, and further strengthen customer loyalty include:

• 18 per cent indicated they were smokers(4) and would be candidates for government reimbursable smoking cessation programs provided in pharmacy, which the Ontario government pays up to $125 per qualifying patient;
• 52 per cent indicated they were overweight(4) and would be candidates for supplements, vitamins and other related products;
• 16 per cent came into the pharmacy specifically for a Scout DS screen, which can result in pharmacy revenue through convenience purchases while that customer is in store;
• 97 per cent said they would recommend a Scout DS screening to family or friends, underscoring significant word-of-mouth potential to increase store traffic;
• 99 per cent planned to see their doctor and make changes to their diet/lifestyles if their Scout DS scores were elevated, suggesting that Scout DS can be a tipping point for personal action.

There are over 9,000 pharmacies in Canada consisting of national chains and independent brands. Combined with the Canadian Pharmacists Association's own advocacy for pharmacists to take on an increased role in diabetes screening as part of their daily practice,(3) Miraculins believes that its Scout DS diabetes screening and consumer survey kiosks could help pharmacies play a greater role in diabetes risk assessment, education and awareness, while identifying actionable pathways to increase related in-store revenues and providing enhanced service to customers.

Notes:

1. Smart Retailing RX: The Full Value of a Diabetes Patient (Feb. 6, 2012);
2. Centers for Disease Control and Prevention: National Diabetes Statistics Report (2014);
3. Canadian Pharmacists Association: Diabetes Strategy for Pharmacists (2013);
4. Designates risk factor for diabetes.

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