Subject: Fwd: Growth 1:5 Walmart
From: "Eric Schwerin" <[email-masked]>
To: "Hunter Biden" <[email-masked]>, "Devon Archer" <[email-masked]>
Date: Tue, 11 Aug 2015 15:57:17 -0400

Not sure if you have seen this or not, FYI…..

Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
[email-masked] <x-msg://59/[email-masked]>
P Consider the environment before printing this email.

> Begin forwarded message:
> 
> From: Neil Callahan <[email-masked]>
> Subject: Fwd: Growth 1:5 Walmart
> Date: August 10, 2015 at 11:13:52 AM EDT
> To: Eric Schwerin <[email-masked]>
> 
> Below is my write up of Walmart, will forward you the internal write up from Counsyl as well.
> 
> ---------- Forwarded message ----------
> From: Neil Callahan <[email-masked] <mailto:[email-masked]>>
> Date: Fri, Aug 7, 2015 at 4:45 AM
> Subject: Growth 1:5 Walmart
> To: John DeLoche <[email-masked] <mailto:[email-masked]>>, Ramji Srinivasan <[email-masked] <mailto:[email-masked]>>
> 
> 
> Hey guys,
> 
> We had a great meeting at Walmart in Arkansas on Monday.  Wendy Nguyen, who has done an excellent job on this effort, and has sent around an internal note that we have shared, but I wanted to top line it from my perspective:
> 
> We have 3 opportunities with 3 distinct buyers:
> 
> 1.  Clinics - 18 and growing.
> 
> 2.  In Store Screenings - 125K women nationwide - next one in 10/15, after that 1/16
> 
> 3.  Pharmacy - 5,000 pharmacies in the US, 750 that have attractive Medicaid reimbursement for Counsyl
> 
> Net Net:
> 
> 1.  Clinics - their JR guy Ian runs all details, if he likes what we can do, we can get it in clinic right away, they do 2,700 lab tests today including HIV (including referrals for cash patients to MDs, a concern of theirs, but we can mimic HIV easily and have not problem), they do blood draws.  Challenge is they are transitioning from and outsource model to an in house model in the next 6 month.  
> 
> The have 18 clinics and expanding, so from an economic perspective it's insignificant, from a deal perspective it's worthy, but let's not spend too much time on it - let do an ROI.
> 
> 2.  In Store Screenings - new relationship, young gal, if we give her account love we can close her - gives us access to a 10/15 launch.  Add Counsyl test to her protocol - we need to bum rush her with a good account person to get the 10/15 trial done.  We need an account person to call her daily and build a personal relationship with her and maybe go to Arkansas 3 to 4 times before October to get this done.  It's our to get, no barriers but ourselves.
> 
> 3.  Pharmacy - Danny Lewis, the head decision maker for Pharmacy (5,000) locations in the US, told us "we were thinking too small" - the exact same words I gave the Counsyl team in March about the Walmart opportunity - that we were "thinking way too small" - so between the worlds biggest retailer and Counyl's biggest investor - we having one thing right - we are thinking way too small.
> 
> There was an obvious miss fire here - where the Walmart team felt an ordering physician was not a problem, but the Counsyl team thought it was a show stopper.  It's been 6 months since our last meeting and the communication between Counsyl and Walmart has been inconsistent and limited, so it's not surprising there was an information gap.
> 
> And the the Pharmacy team is aggressively upgrading their capabilities to be a lab test destination, training all their techs on blood draws and adding an overlay team to ID opportunities for expansion, and seemed ready to take on the Counsyl test - blood and saliva.
> 
> Overall:
> 
> Go after the big opportunity.  The opportunity at Walmart is their 5,000 Pharmacies, not their 18 clinics - and they told us that twice in two meetings.  
> 
> The idea that the Walmart Pharmacy/Clinic can be a destination to get Counsyl tests is exciting to Walmart.  And they/we can promote the tests and folks can walk in and get a script on-site and covered is also doable. 
> 
> But more importantly, Walmart sees the relationship with Counsyl as a way for them to "stop playing around the edges of health care and make a statement and getting right in the middle of health for women and families" . . . 
> 
> If Walmart carried the Counsyl tests, they would me making a statement to America about their role in health care going forward.  They also said they would need to do it with a brand like Anderson - with a Counsyl test, but with a bigger brand.  This a problem as the Counsyl brand is not strong - every Tom Dick and Harry ask about 23 and Me in our meetings - never about Counsyl.  So maybe Julianna Smoot can bring in Komen and give some credibility to the Counsyl brand/test vs have to choosing a partner like Anderson and then limited the market from Moffit, Sloan K, etc.
> 
> And we mentioned the 1M women testing campaign - the clinic team said "you don't need me as I could not deliver volume", the Pharmacy lead was delighted and wanted to learn more.
> 
> In Conslucion - Walmart is a "WHEN" not an "IF" and the pace and size of the deal is up to how fast and hard we are willing to work for it.  Let's close a spot in the In Store Screenings for October right away, and then get into the clinics and pharmacy in the right states by December 2015 which would make Walmart Counsyl's biggest customer/channel in 2016.
> 
> Best,
> 
> Neil
> 
> 
> 
> 
> -- 
> 
> Neil Callahan
> rstp
> [email-masked] <mailto:[email-masked]>
> 917-945-9516 <tel:917-945-9516>
> 
> 
> -- 
> 
> Neil Callahan
> rstp
> [email-masked] <mailto:[email-masked]>
> 917-945-9516