Jacob Betzner

ZappRx Case Study

CHALLENGE

ZappRx wants to increase efficiency in the specialty medication prescribing process. Needing to decide between two distinct business models, “Matrix,” a risky yet potentially lucrative product independent of any pharmaceutical company and house prescription data for all major rare disease medication on one platform, or “Orbit,” a safer, less ambitious strategy of building a customized platform for one pharmaceutical company at a time.

STRATEGY

After analyzing industry trends and ZappRx financial data, I, and two colleagues from the MGMT 540 class at Duquesne University, determined the risk to be worth the reward and to pursue the “Matrix” business model.

RESULTS

Despite estimates of nearly $30 million in costs over five years while gathering patient data, capturing only 10 percent of specialty prescriptions (approximately 4.4 million prescriptions) at $250,000 to $400,000 per brand offsets development and operating costs for the first five years. Additionally, packaging data for sale creates additional revenue streams worth millions of dollars.