OPPORTUNITY

MALE THERAPEUTICS

A wholly owned subsidiary of Ultimate Sports, Inc. Medical Therapeutics Doing Business As “Male Therapeutics”

THE BUSINESS

Medical Therapeutics, Inc., is a concierge, boutique Urology medical practice, providing an
Internet (IT) and event driven “one-stop-shop” for male-specific issues.
Demographics

Tens of millions of American men suffer from low libido & erectile dysfunction. Decreased sexual function in many men is a progressive natural occurrence of aging.  ED affects 40% of 40-year-old men and over 65% of 70-year-old men. Mainly vascular diseases cause ED. There are approximately 50,000,000 men over 50 years old in the United States, according to the 2010 census.  ED not only impacts the sexual intimacy between people in addition causes considerable additional emotional pain resulting from anxiety, guilt, and even anger. In some cases, this leads to separation or divorce

Additional prevalent trends affecting male sexual dysfunction are:

  • a) Testosterone levels have decreased significantly in the last two generations, while BMI (Body Mass Index) has increased.  Less Testosterone and more fat.
  • b) There has been an increase in the use of prescription medications such as blood pressure that have detrimental sexual side effects.
  • c) Marijuana use, for medical or recreational reasons, has been show to reduce or completely negate the ability to get erections.

These trends have further rendered many men not only unable to generate an erection but even to sustain an erection of sufficient hardness to penetrate.

Other Common Medical Conditions

  • Hypertension, diabetes, obesity, elevated cholesterol, vascular diseases, prostate problems and hormonal irregularities reduce or completely eliminate the ability to get and sustain erections.
  • The high levels of prescription drug use have side effects that stunt erection ability.
  • Stress increases a male’s risk of developingthe earlier onset of sexual dysfunction.
  • The pharmaceuticals commonly used to treat these conditions exacerbate sexual dysfunction.

The Most Recent Marketing trends are:

  • On-line interactive medical diagnosis is sometimes sufficient to be able to ship medicine to the patient without having to be physically present for the examination.
  • Blood tests or blood pressure test when needed can be done by third parties such as LabCorp or Quest.  The results are sent electronically to the physician’s office in very little time.  The testing sites have thousands of locations convenient to most of the population.
  • Urgent care facilities can give physical exams with the results sent electronically to the physician.

While there are real physical and psychological reasons for ED, there’s no single cause. The chart below outlines some of the most common medical causes of ED. 5

The consequences are:  Erectile Dysfunction (ED), Hormonal imbalance and increased fat accumulation.

https://www.reuters.com/article/us-health-diabetes-erectile-dysfunction-idUSKBN1AC2XJ
https://www.jsm.jsexmed.org/article/S1743-6095(15)32063-4/fulltext
https://www.ncbi.nlm.nih.gov/pubmed/28993149
https://www.ncbi.nlm.nih.gov/pubmed/31795801
https://www.ncbi.nlm.nih.gov/pubmed/18997809
https://www.diabetes.org/resources/statistics/statistics-about-diabetes

The Market and Market Size

The ED and Male Rejuvenation and Enhancement treatment market is projected to grow to $4.08 Billion from 2016 to 2020.  Additionally, annual revenue generated from Testosterone Treatments alone in the United States is expected to reach 3.8 Billion dollars.   It is estimated that $800 million of this industry is spent on herbal, nutraceutical supplements that are not approved by the FDA. These supplements, in many cases, have little or no clinical evidence to support their claims of improved sexual performance or phallic enhancement.  The entire market size is close to $10 Billion.

Medical Therapeutics, Inc. focuses on the patient with chronic erectile impotence whose condition has not responded favorably to conventional pharmaceutical remedies.

In our experience, this patient population is highly motivated and emotionally distressed, and as a result, allocates a significant amount of discretionary income toward alleviating male sexual dysfunction and similar conditions. Our clinics offer treatment plans that have proven to be effective in over 96% of cases.

The current ED Business

A key aspect of Medical Therapeutics’ is its ability to grow its clientele base inexpensively because:

  • Once the aforementioned population of men becomes aware of the effective treatment options provided by Medical Therapeutics, each such afflicted interested male is expected to spend upwards of $200 to $250 per month.
  • Typically, a patient is charged anywhere between $199 to $399 for a Urologist’s office visit. If they are examined “on-line” through our clinic “in the cloud” by our Board Certified Physicians their cost could be $0.00 if they order medicine through us.
  • The patient may pursue Medicare or insurance reimbursement In light of the sizeable Elder Component population of patients,
  • Should an individual choose to purchase a treatment plan, then the patient will have access to:
  • a) Adjustments to our customizable medications
  • b) Access to an on-line always available Patient Counselor to assist with any questions
  • c) Medications are shipped directly from our pharmacy with direct shipping
  • d) On-line Priority appointments with the Practitioner
  • e) Immediate shipping of medicine to the maximum extent allowed by law

In Office Procedures

Intra-cavernous Pharmacotherapy (ICP), which we use needs the physical presence of the patient.
Extensive videos explaining and demonstrating proper use will satisfy most patient’s questions.
These videos are on-line and can be accessed as often as needed by our patients.
We also give a Testosterone and Blood profile analysis and evaluations, which consist of:

  • Blood work can be done by locally
  • available walk-in testing stations
  • Exams, can be contracted with their local mini-ER-clinic which are readily available.
  • Follow-up consultation including self-administered supplementations in the form of creams, oral ingestion or painless injection.
  • Patients have unfettered access to their private Electronic health record (EHR) portal to order and buy additional supplementary products, generating additional revenue.

Other In Office Procedures 

Platelet Rich Plasma,  PRP How does it work and how is it done?  First, blood is drawn in our office as though you are having routine blood testing at your primary care physician’s office. The blood is spun in a centrifuge and the PRP is separated and removed from the rest of the blood. The PRP is taken from your body and is specially prepared by spinning down the blood cells to a high concentration. The highly concentrated PRP is then injected into the penis or skin. PRP contains many tissue growth factors that stimulate the growth.

 Platelet Rich Plasma (PRP) for Penile Rejuvenation

PRP is effective in penile rejuvenation and functional restoration. PRP contains many tissue growth factors that stimulate healing and growth to promote tone, hardness, increased density, and thickness. PRP begins with a simple blood draw in our office.  PRP is separated and removed from the rest of the blood, then injected into the penis. PRP therapy is a beneficial treatment option for patients with penile tissue issues due to its excellent safety profile and relatively low cost.

PRP injections are an effective treatment for Hair Restoration.

PRP injections can rejuvenate hair follicles to slow hair thinning and eventual loss.

Rejuvenation can be seen as early as 1 month, but is typically evident between 4-8 months and will continue to improve up to a year after treatment. The benefits of PRP in hair rejuvenation is seen in one month but is typically evident between 4-8 months and will continue to improve up to a year after treatment. “The goal of treating tissue loss early is to maintain tissue for as long as possible, improve density, and keep the results for months and years to come, pushing back against the need for more aggressive solutions until further down the road.

Competition

We experience little competition from general practitioners and general urologists – who do not aggressively offer solutions similar to our own. Generally speaking, the community urologists are more interested in more expensive procedures such as surgery or implants.

Recently a variety of companies have come “on-line” with their offers of mail order pills.

Our organization’s dedicated Doctors have a keen interest in improving men’s quality of life by using minimally invasive treatment strategies to regain sexual function.  Many individuals in our target demographic have been unresponsive to and/or are wary of conventional pharmaceutical treatments (e.g. Viagra, Cialis, etc.).

As such, we do not compete directly with those practitioners and clinics that employ traditional treatment modalities. We use specially designed oral and prescription strength, pharmacy medications personalized specifically for each patient based on his needs. This level of detail for sexual function is impossible in the traditional clinical setting. This makes for a uniquely rewarding experience for the patient which fosters patient trust and confidence in our clinics.

Given our focus on this area of men’s issues, we believe that we are more successful at acquiring and retaining patients than those private medical practices and clinics who treat a broad array of conditions.

Moreover, we are confident that our patients significantly enjoy a more focused and comprehensive treatment than they would from our competitors.  Patients benefit from our experienced physicians and customizable solutions, which have been shown to result in more favorable outcomes for our patients than would otherwise be achieved with the “one-pill-fits-all” approach employed by alternative supplements providers.

A typical mini-clinic consists of:  A Doctor (or medical practitioner) and one intake office person who manage the patients and a medical technician (for blood draws) who with the doctor coordinates and manages the client/patients.  The various clinics have different procedures depending on specific patient needs and demands.

Our Strategy

There are three elements to running a successful clinic:

  • Patient acquisition:  keeping costs low. The traditional acquisition cost is $381 per patient.
  • Low service costs to start the product flow.
  • Patient protocols and procedures include examinations for product determination.
  • Re-orders: the industry average is 48%, which ensures a growing base of revenue.

Patient Acquisition Our management has:

  • Performed exhaustive analyses of local markets and potential locations for opening of our mini-clinics. We look for up-scale population center with more than 250,000 persons
  • We have targeted 150 plus locations based on the foregoing analyses;
  • We have attended events and as a result retain patients regardless of their actual living locations
  • We are also Employing SEO and SEM techniques through Internet protocoland have utilized on-line media such as: Google, Facebook, Yelp and which have become the mainstream business communication and marketing method.
  • We invite inquirers to an on-line chat with a knowledgeable medical assistant.

Growth

A clinic starting with a strong on-line presence can begin to generate profits on a cash-flow basis within the first 120 days.  This aspect of the business model is driven by the frustrations experienced by those individuals suffering from low testosterone symptoms (hypogonadism) to male sexual dysfunction with many causes.   These men frequent state that they have “tried everything” to “just can’t do it”, especially the patients with hypogonadism.

After a patient has been verified to be healthy enough for sexual intercourse and his medical history has been established, he is shipped medication.  Of course, the shipment is preceded by the appropriate credit card charges, which can be highly competitive.

If in office, in less than 30 minutes, he has achieved an erection.  Consequently, he is presented with a solution to his long-standing Chronic Erectile Dysfunction, and which demonstrates first hand to the patient the efficacy of the treatment.

Satisfied patients express intense feelings of satisfaction and relief – they are in control of their sexual activities, don’t have to wait for an appointment and replenish their key to sexual satisfaction at will. The industry average patient (customer) retention is 48%.  We believe that Medical Therapeutics can have at least more than 75% of these individuals become long-term patients (customers), with automatic shipments, easy pay options and credit.

MANAGEMENT

Our management team of Medical Therapeutics consists of:
Medical Therapeutics corporate management team is currently comprised of the following staff;

  • Board’s Medical Directors: Martin Maassen MD,(40 years experience), &
  • Charles Davis CPA (Accounting)
  • Andy Stack Esq. (Legal)
  • Adam Beal MBA, Marketing Manager
  • Gunther Than BS, (40 years experience) Director and General Manager

SELECTED FINANCIAL DATA

Financial Statements per clinic.
We believe it is important that we provide some insight regarding the profitability of the clinics.
This Medical Therapeutics Executive Summary is pro forma financial projections
 Based on Real Clinic data that reflect our “INTENSE MARKETING”  growth strategy of the clinics.

Year I Year II Year III Year IV Year V TOTAL
SALES 1,000,00 2,000,000 2,300,00 2,750,000 3,000,000 11,050,000
COSTS (77%) 770,000 1,540,000 1,771,000 2,117,500 2,310,000
EBITDA (23%) 230,000 460,000 529,000 632,500 690,000 2,541,500

APPENDIX A  

Graph showing sexual desire of Males versus Females by Age:

APPENDIX B

“Most people assume that people stop doing it (intercourse) after some vague age,” said sex researcher Edward Laumann of the University of Chicago.  Half (50%) of those aged 57 to 75 said they gave or received oral sex, as did about a third of the 75- to 85-year-olds. The speculation is that the male generally has erection problems and subsequently they resort to oral stimulation. The New England Journal did a 2-hour face to face survey of 3005 men and women around the country. Results:

  • Sex with a partner in the previous year was reported by 73 percent of ages 57 to 64; 53 percent of those ages 64 to 75, and 26 percent of ages 75 to 85. Women of all ages were less likely to be sexually active than men.  But they also lacked partners; far more were widowed
  • People whose health was excellent or very good were nearly twice as likely to be sexually active as those in poor or fair health
  • Half of the people having sex reported at least one related problem
  • Most common in men was erection trouble (37%)
  • One out of seven (14%) men had used Viagra or other substances to improve sexual performance

APPENDIX C               INTER-CAVERNOUS PHARMACOTHERAPY 

  • ICP: is by far the most effective treatment available.ICP has been widely used since the mid-80s.  It is considered the “gold standard”.   The BENEFITS include:
    • a) Immediate results, it generally works within a few minutesof application
    • b) The medicine is applied locally; there are no known systemic side effects
    • c) ICP can be used without regard to food, wine, or other medications
    • d) ICP has been reported to be curative in many patients with ED.  Results, of course, will vary.
    • e) ICP have a favorable profile regarding side effects, minimal or none.

However rarely, mild scarring of the penis can occur, and patients are counseled on this rare occurrence. It is usually not a major issue and often requiring a change in the formulation of the ICP.

Since the erection chemical is injected directly into the penis, rarely are there generalized side effects that we associate with medications that circulate throughout the bloodstream. These side effects include, but are not limited to dizziness, headache, sinus congestion, and, upset stomach.

Side effects of the medicine are localized and infrequent. It’s possible to have some bruising or infection at the injection site —or the more severe side effect of prolonged erection, also known as priapism. Priapism must be treated and relieved to avoid further complications to the penis. Although not entirely prevented, the chances of developing priapism are quite low due to in-office testing before the start of home administration.

You can start or stop ICP any time you wish and can be used on an “as needed basis”. Some physicians and urologists often recommend ICP as part of a permanent treatment program.  A course of treatment typically requires 2-3 ICP applications per week for a period of six months

A patient may experience return of natural erections and spontaneous erections during the course of treatment

An additional benefit of ICP in men with premature ejaculation is that ICP sustains the erection after ejaculation and a premature ejaculator becomes less sensitive to sexual stimulation eliminating performance anxiety.  A new habit can be formed, and ejaculatory control will improve the permanent erection solution.

APPENDIX D

Population 65 and over: 1980 to 2050
Census Year Males 65 and older Percent Males 65 and older
1980 10,304,915 40.3%
1990 12,565,173 40.2%
2000 14,409,625 41.2%
2010 17,291,694 43.0%
2020 24,323,182 44.4%
2030 32,293,978 44.8%
2040 36,396,362 44.8%
2050 39,916,666 45.1%

This table was compiled by the U.S. Administration on Aging using the Census data noted.