EMAIL DETAILS

Neil Callahan
RSTP
neil@rstp.com
917-945-9516


---------- Forwarded message ----------
From: Neil Callahan <neil@rstp.com>
Date: Mon, Oct 27, 2014 at 2:51 PM
Subject: Re: thanks and looking forward to Wednesday
To: Ken Nesmith <kenneth@counsyl.com>
Cc: Alissa Reiter <alissa@counsyl.com>, Rob Guigley <rob@counsyl.com>,
Ramji Srinivasan <ramji@counsyl.com>


Hi guys,

A couple of others things to look at:

1. Walmart has opened up health clinics for their employees, they are the
largest non-gov employer in the US with 1.3 associates. Below is a story
on 2 clinics they are piloting in Texas and then will extend the pilot to
Georgia later this year. One of the SVP from Walmart on the phone on
Thursday I believe is in charge of this program/pilot.

http://www.wfaa.com/story/news/local/2014/08/21/14231804/

As you guys may know, large companies like Walmart and Google are self
insured, they just use companies like United Healthcare to manage the
admin, but they are not purchasing insurance coverage from them, all the
healthcare costs are paid directly by the company, there may be a "Large
Enterprise" strategy for this type of employer to cut direct and exclusive
deals.

2. Theranos - They did a significant deal with Walgreens last year. Think
about how you'd position as a gateway to lab testing and the most
profitable category of lab testing, just something to have a point of view
on in case they ask.

Let me know if you want to review a document later today or tomorrow, goal
would be to send the pre-read Tuesday COB if you think that makes sense.

Best,

Neil


Neil Callahan
RSTP
neil@rstp.com
917-945-9516


On Sun, Oct 26, 2014 at 1:56 PM, Neil Callahan <neil@rstp.com> wrote:

> Hi Ken,
>
> Yes, a very productive call. To summarize, I think some of the key points
> in introducing the company are:
>
> 1. Shared philosophy about commerce - bring high value products to market
> at the lowest possible price so all consumers can benefit and participate
> in the value proposition.
>
> 2. Counsyl's saliva based sample technology enables lab testing to go
> retail - no need foor specialized lab technician skills or conditions,
> pharma techs and the like can obtain the sample or even consumers can self
> administers the test and obtain a sample.
>
> 3. Shared focus on Women as head of household. 70% of purchased
> decisions in the US are made by women/women in a household. And for
> healthcare it's the same or higher - children and men are not getting
> screening because they choose on their own, it's the women in the household
> caring for the children and nagging men to get proper screening and care.
>
> 4. Benefits to Walmart of attracting Women & young families is clear -
> Counsyl's tests are highly correlated to that demographic.
>
> 5. Women's Health as a platform - perhaps talk about the timing to
> approach Walmart is aligned to launch of the breast cancer screening test
> and looking for a channel to get the test out to as many American women as
> possible, perhaps in conjunction with Koman, etc. Perhaps even a
> promotional idea of have a "Breast Cancer Testing Day" where families take
> their mom or daughters, etc to Walmart to get tested, so huge event Walmart
> can take credit for nationwide. They have the footprint to pull something
> like that off.
>
> 6. Counsyl Connect Technology - as way to manager consumer relationships
> before and after they leave the store and a way to generate leads and
> traffic to the store.
>
> 7. Potential Deal Points:
> A. Pricing and business model - would Walmart buy kits and resell them?
> Would it be a rev share of the insurance reimbursement? Don't think you
> come with exact pricing, but ideas on potential structure.
> B. Packaging and retail product - how would the kit/test be tailored to
> the retail environment?
> C. Marketing & Promotion: what kind of market support would you invest
> in to support the product at retail? Brand & media campaign, sponsorship,
> traffic driving tactics, etc.
> D. Data Sharing: what kind of list sharing and analytic sharing would
> you propose (i.e., driving non-Walmart test consumers to Walmart, sharing
> demographic and other information with Walmart, etc.)
> E. Volume / Capacity: how many tests could Walmart do in a year? What
> would success look like in terms of an annual target across the test
> portfolio
> F. Technology: could the Counsyl technology be expanded into other lab
> tests that Walmart may want to enter the market with? Could be a whole
> strategy around taking share and traffic from Labcorp and Quest and
> hospital centers and bringing that traffic into the retail store.
>
> 8. Desired Outcome: I think the goal of the call would be to create
> enough interest to generate an invitation to come to Bentonville and spend
> time with their team learning more about Counsyl and exploring what a
> potential relationship could look like.
>
> I am sure you guys have it covered, just wanted to provide additional
> input that you might find helpful. If you want me to review anything or
> discuss further I have time tomorrow and Tuesday, just let me know.
>
> Best,
>
> Neil
>
>
>
> Neil Callahan
> RSTP
> neil@rstp.com
> 917-945-9516
>
>
> On Fri, Oct 24, 2014 at 4:09 PM, Ken Nesmith <kenneth@counsyl.com> wrote:
>
>> Thanks again Neil! Looking forward to Wednesday. Rob, Alissa, Ramji, and
>> I will be up and caffeinated. We'll share materials with you before the
>> call; the discussion today was helpful.
>>
>> Ken
>>
>> PS, small world moment - Alissa and Greg Penner were classmates at
>> Stanford!
>>
>