MediCircle— Repurposing Unused Cancer Medications

The Problem

In 2020, the United States spent $207 billion on cancer care and $65 billion on oncology medications, amounting to 1% of the country’s GDP. Contextualized to the individual, the average treatment costs $150,000, with 10k/month attributed to chemotherapy. Due to these high treatment costs, 63% of cancer patients report financial burden. In 2020, an ensuing 825,000 cancer patients reduced spending on everyday essentials such as food and clothing to afford their prescribed medications, with over 42% of patients depleting their life’s assets two years subsequent to diagnosis. Simultaneously, treatment plans are frequently adjusted due to adverse reactions or disease progression, causing 41% of cancer patients to have unfinished oral prescriptions. Any leftover medication is usually incinerated, leading to the waste of over $5.94 billion worth of unexpired oncology medicines annually.

What The Company Does

MediCircle collects leftover, unexpired chemotherapeutic pills sealed in tamper-evident blister packaging, recertifies the medicine’s quality using their technology alongside a team of pharmacists and redistributes the medication. Collections are sourced from registered healthcare facilities, including hospitals and pharmacies. Once MediCircle has received a donation, their team of pharmacists inspects the integrity of every pill and verifies the drug’s identity. Previous records are integrated into their database using GS1 barcodes and NDCs, creating a comprehensive profile for each pharmaceutical agent. Medications are then cataloged in MediCircle’s secure database and stored in compliance with FDA and manufacturer regulations. Registered facilities can then request the medication on behalf of individuals requiring financial assistance. MediCircle delivers the medicine to facilities by mail so patients can seamlessly receive life-saving cancer treatment at little-to-no cost. MediCircle creates significant savings for patients, insurance companies, and healthcare facilities, all while improving the health of local communities.

Market

To date, the medical redistribution industry has moved over $150 million worth of medication. However, the sector is still in its infancy, with a total accessible market of $122.4 billion. MediCircle’s market position is unique from other re-distributors in its supply, distribution channels, resource allocation and product. No competitor is targeting insurance companies for customers. Doing so will align the redistribution segment of the pharmaceutical industry with the conventional healthcare value chain, streamlining turnover rates. Partnerships with healthcare entities that serve a greater number of individuals, such as pharmacies and hospitals, rather than small-scale charitable clinics or B2C, will exponentially increase the supply and user network. Furthermore, partnerships with pharmaceutical companies disincentivize efforts to inhibit our operations. We further differentiate our product by focusing solely on high-cost, specialty medications. Redistribution of these medications is most valuable to payers, patients and general healthcare expenditure savings. MediCircle’s investment in technology also focuses on chemical analysis and streamlining logistics, which can help negate the stigmatization of recaptured drugs and increase our efficiency to ultimately reduce costs and ensure a sustainable advantage.

Business Model

While cancer medication is often unaffordable for patients, insurance companies incur the bulk of the financial burden. Insurance companies usually pay 80% of medical expenses. MediCircle integrates within an insurance company’s formulary, charging them a negotiated discounted rate of the medication’s market value. The fee paid by the insurance agency allows MediCircle to operate as a for-profit without charging charitable organizations or patients. Per agreement with MediCircle, a patient receiving their medication shall not pay a copay exceeding $15. 

Traction

MediCircle is planning to launch its pilot program in the spring of 2022. Currently, MediCircle is awaiting regulatory approval from the New Jersey Board of Pharmacy. Once they secure approval, MediCircle will begin collecting medicine through hospital partnerships. Medicine in the pilot will be distributed to charitable clinics and nursing homes. MediCircle has also participated in multiple pitch competitions. Most notably, in March 2021, MediCircle was awarded the 1st place prize of $25,000 for the Brown Venture Prize as well as fan-favorite as voted by over 500 registrants. Additionally, they recently joined MassChallenge’s Fall 2021 accelerator cohort. They have previously partaken in Brown University’s Hatch Health incubator.

Founding Team Background

Co-founders Jack Schaeffer and Eliza Sternlicht are current students at Brown University, graduating in 2022. CEO of MediCircle, Jack Schaeffer, studies Applied Mathematics — Economics and has a previous background in entrepreneurship. Jack spent a year consulting for Save One Life’s SHARE program, which has redistributed over $155m of hemophilia factor abroad. Jack has founded ventures ranging from upcycling tires in India, to providing financial support and athletic enrichment to 3000+ immigrant detainees. CTO of MediCircle, Eliza Sternlicht, studies Biomedical Engineering at Brown and is an innovator in the healthcare space. Her background lies in biomaterials and developing hardware for medical devices. She has created low-cost prosthetics to address health disparities, dual-chamber syringes for anesthetics and is currently designing an ambulatory EEG for epilepsy diagnosis and treatment. She previously coded GoodPath’s pharmaceutical database, a B2B e-commerce platform for complementary medicine. 

The Ask

MediCircle is looking to expand their network to speak with potential customers as well as mentors. They would love to connect with people in the oncology space, pharmaceutical value chain or in the healthcare insurance space. They are also looking for advisors and mentors with previous success in healthcare entrepreneurship. Connect With The MediCircle Team.

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