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Re: chuckerfmfla post# 914

Monday, 03/14/2005 12:10:51 PM

Monday, March 14, 2005 12:10:51 PM

Post# of 1056
From the Wells Group

14 March, 2005

Through its newly acquired subsidiary, PharmaTech Solutions, CareDecision Corporation is now primarily engaged in the marketing and distribution of prescription drugs and diagnostic products to several pharmaceutical markets, but primarily to the nation’s 40+ million uninsured and underinsured. The company’s unique business model seeks to leverage its proprietary medical IT and its existing wholesale drug distribution business with its newly created mail-order pharmacy to quickly grow a high volume pharmaceutical distribution business that has historically generated $100+ million into a nationally recognized prescription drug distribution and fulfillment company, servicing both the high volume and high profit margin drug markets.

Up until January 2005, CareDecision’s sole businesses were the marketing of its “MD@Hand” software application and its Residenceware e-commerce networks for the Lodging Industry. Both Products leverage the connectivity of hand held devices, such as PDAs via the internet. Used by healthcare and real estate professionals, lodging managers and hoteliers this first-in-class PDA software application offers the user access to job specific information (patient history or property database), instant messaging, and prescription fulfillment for pharmacists.

The business model going forward is to create a fully integrated e-Pharmacy whereby physicians can submit prescriptions directly to the company’s pharmacists through CareDecision’s state-of-the-art PDA technology. These high margin transactions are made possible by the company’s proprietary IT, which also facilitates the current bulk prescription drug business, an operating unit that has previously generated $100+ in annual revenues.

By linking a centrally located state-of-the-art drug distribution facility with an established wholesale prescription distributor and powerful wireless technology, the Company is positioned to bring economic and administrative efficiencies to the projected $8 billion market for delivering prescriptions to 40+ million uninsured and underinsured Americans. It is expected that the combination of CareDecision’s pharmaceutical distribution and PDA technology business units will generate in excess of $200 million+ revenue in the first 12 months, as evidenced by historical performance by the predecessor company and the current backlog of orders from existing customers.

To fund this business combination, CareDecision has secured a $10 million monthly revolving credit facility which will facilitate the purchase and resale of FDA-approved pharmaceutical and diagnostic products to its wholesale pharmacy distribution network.

Future expansion of revenues consist of introducing additional medical diagnostic products for blood born illnesses such as diabetes and cholesterol. Medical diagnostic products can be immediately introduced to a network of physicians and pharmacists connected and participating within CareDecision’s e-Pharmacy program, which has enlisted approximately 2,500 Doctors to date.

CDED’s exclusive business model - leveraging its proprietary PDA medical technology to generate prescription drug sales to America’s uninsured and underinsured could yield in excess of $175 million+ of revenue in the first 12 months.

A first-in-class PDA software application provides physicians with the capability to learn patient history prior to entering the examining room and after treatment update the insurer of the episode of care.

Prescription drugs account for more than 10% of the $1.5 trillion annual domestic healthcare market.

In February the Company successfully raised more than $2 million in funding with a potential to receive another $2.5 million in funding from the exercise of warrants.

In one month since assuming operational control of the wholesale drug distribution unit, CareDecision reported that it has received $4.5 million in new orders for prescription drugs, and has already shipped over $1.05 million in the first 30 days of operations.


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