Case Study. GlucosePATH shows the way to improved outcomes and $1.1MM in employer drug cost savings

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Case Study GlucosePATH shows the way to improved outcomes and $1.1MM in employer drug cost savings

Background A self-insured company has 600 employees with Type 2 Diabetes The company asked if GlucosePATH could help improve employee HbA1c outcomes and reduce the company s prescription medicine costs

GlucosePATH Overview Evaluates up to 6 million combinations of medications per patient Considers patient and system costs in decisions FDA review completed August 2017 Clinical trial at Saint Elizabeth Healthcare October 2016 to January 2018 Reduces patient average HbA1c by 0.6 in 90 days (n=, p<0.02) Approximately 63% of study patients follow PATH recommendations

Analysis Data and Methods: Company s 620 employees represented by sample of 200 patients currently under PCP supervision GlucosePATH evaluated current PCP medication regimens for: o HbA1c control o Patient cost o System cost o Composite scores (weight gain, hypoglycemia risks, etc.) Regimen meds mapped to employer formulary (e.g., Levemir to Lantus) Employees allowed use of manufacturer coupons

PCP 200-Patient Summary GlucosePATH estimated the Company spends $1.73MM annually on Type 2 medication. Average HbA1c is 7.89. Other outcomes are mixed. Population Metrics (PCP) Average A1c 7.89 Current Population $233(sys) $20(patient) 7.89 a1c / 35.0 score System Cost per Month Patient Cost per Month Composite PATH Score Annual System Spend $233 $20 35.0 $1.73MM

Monthly System Cost PCP System Cost vs HbA1c control $1,200 Monthly System Cost and a1c Levels PCP Therapies - Population $1,000 $800 $600 $400 $200 Average $0 4 6 8 10 12 14 16 a1c level

Monthly Patient Cost PCP Patient Cost vs HbA1c control $62 Monthly Patient OOP Cost and a1c Levels PCP Therapies - Population $52 $42 $32 $22 Average $12 $2 4 6 8 10 12 14 16 a1c Level

GlucosePATH Analysis and Recommendations PATH solutions improve HbA1c, lower system costs, and provide more side effect benefits. Population Metrics (PATH) Averages A1c 6.7 (-1.2) Current Population $233(sys) $20(patient) 7.89 a1c / 35.0 score System Cost per Month Patient Cost per Month Composite PATH Score Annual Savings Annual Savings (63% par) $76 (-$157) $20 (same) 84.0 (+49) $1.17MM $737K PATH Scenario $76(sys) $20(patient) 6.7 a1c / 84.0 score

Savings from Eliminating Duplicate Meds GlucosePATH identified when employees were prescribed two branded medicines with overlapping mechanisms of action, saving Company thousands of dollars per month. $12,000 system savings in scenario Mid-43 Current a1c: 7.1 BMI: 36 Female Comorbidities: High LDL, Hypertension, Obesity Medications: Victoza, Januvia, Lantus (high), Metformin Annual cost: $13,560 (system), $516 (patient) PATH a1c: 6.9 Medications: Actos, Xigduo, Soliqua Annual cost: $0 (system), $1,584 (patient) <- Company can pay 90% of this $10,685 system savings in scenario Bottom-49 Current a1c: 8.5 BMI: 40 Female Comorbidities: Obesity, Hypertriglyceridemia, Smoking Medications: Glimepiride 2mg Daily, Janumet XR, Victoza, Invokana, Diet, Exercise Annual cost: $12,192 (system), $480 (patient) PATH a1c: 6.9 Medications: Actos, glimepiride 1 mg daily, Soliqua, Xigduo Annual cost: $0 (system), $1,704 (patient) <- Company can pay 90% of this

Monthly System Cost Monthly System Cost and a1c Levels PCP and PATH Therapies - Population PCP System Costs PATH System Costs $1,200 $1,000 $800 $600 $400 $200 PCP AVERAGE PATH AVERAGE $0 4 6 8 10 12 14 16 a1c level

Monthly Patient Cost $402 Monthly Patient OOP Cost and a1c Levels PCP and PATH Therapies - Population Patient Monthly OOP Cost PATH Patient OOP Costs PATH s outlier sub-population $302 $202 $102 PATH Average PCP Average $2 4 6 8 10 12 14 16 a1c Level

Keys to managing system costs for better outcomes: Software makes consistent pay-for-performance decisions around formulary cost and efficacy Manufacturer coupons matter A small patient sub-population requires special attention