Cadence OTC is currently raising funds on Wefunder with a valuation cap of $73 million, offering investors the opportunity to participate through a convertible note. This financial instrument will convert into equity at a future date, typically at a discount to the valuation of a subsequent financing round. In this case, Cadence OTC is offering a 20% discount, which can be appealing for investors looking to capitalize on the company's future growth at a reduced entry price.

The company operates in the healthcare and pharmaceuticals industry, focusing on making birth control more accessible by selling it over-the-counter without a prescription. With an exclusive partnership with the leading distributor of healthcare products in 180,000 US convenience stores, Cadence OTC is well-positioned to address the 2024 US Contraceptive market. Despite being in the growth stage and pre-profit, the company has demonstrated significant traction with a revenue run rate of $3 million.

With a revenue multiple of 24.33x, Cadence OTC's valuation is actually quite attracive relative to the broader Healthcare & Pharma market. However, it's essential to consider the high capital intensity of the healthcare and pharmaceuticals industry and the regulatory hurdles associated with bringing a product like this to market. The company's success hinges on its ability to navigate the FDA's Rx-to-OTC switch process and commercialize its product effectively.

Cadence OTC operates within the expansive and highly regulated US contraceptive market, a sector marked by both its essential role in healthcare and its significant barriers to entry due to stringent FDA approval processes. The company's innovative approach aims to disrupt the market by making birth control more accessible through an over-the-counter (OTC) model, a move that could profoundly impact the market dynamics. The US contraceptive market is valued at approximately $9.2 billion and is anticipated to grow at a steady rate of 5.2%, underscoring a substantial opportunity for Cadence OTC's unique product offering.

Despite the market's established competitors, Cadence OTC's strategy to work closely with the FDA to enable the Rx-to-OTC switch for their combination birth control pill represents a significant innovation in the sector. This strategy could not only expand the market by increasing the accessibility of birth control but also position Cadence OTC as a pioneer in the space. The company's revenue run rate of $3 million and its exclusive partnership with the leading distributor of healthcare products in 180,000 US convenience stores further demonstrate its potential to capture a significant share of the market.

However, the company's path forward is not without challenges. The high regulatory hurdles inherent in bringing a prescription medication to the OTC market cannot be overstated. FDA approval for an Rx-to-OTC switch is a rigorous process that requires substantial evidence to ensure the product's safety and efficacy when used without professional supervision. Additionally, while the contraceptive market shows high acceptance and demand, Cadence OTC must navigate a competitive landscape that includes both pharmaceutical giants and emerging health tech companies.

Cadence OTC is spearheaded by CEO Samantha Miller and Chief Medical Officer Nap Hosang, both of whom bring a wealth of experience to the company. Miller, with 30 years of relevant industry experience, has a strong background in healthcare and pharmaceuticals, which is instrumental in navigating the complex regulatory landscape of over-the-counter birth control. Her leadership is pivotal in Cadence OTC's mission to make birth control accessible to everyone, everywhere.

Hosang, with 28 years of experience, complements Miller's expertise with his deep understanding of medical affairs, clinical development, and regulatory strategy. His role as Chief Medical Officer is crucial in ensuring that Cadence OTC's products meet the stringent safety and efficacy standards required for FDA approval.

Together, Miller and Hosang form a formidable leadership team with a clear vision for Cadence OTC. Their combined experience not only lends credibility to the company's ambitious goals but also positions Cadence OTC as a leader in the movement to make birth control more accessible. With a dedicated team of 8 members, Cadence OTC is well on its way to achieving its mission.

Cadence OTC is positioning itself as a pioneering force in the healthcare and pharmaceuticals industry by working to bring the first combination birth control pill over-the-counter (OTC), making it accessible without a prescription. This move is not only innovative but also addresses a significant gap in the market for accessible contraceptive options. The company's effort to navigate the Rx-to-OTC switch process with the FDA signifies a potential shift in how birth control is distributed and accessed in the United States, setting Cadence OTC apart from its competitors.

Furthermore, Cadence OTC's exclusive partnership with the leading distributor of healthcare products, which services 180,000 US convenience stores, presents a notable competitive advantage. This partnership could dramatically increase the accessibility of its products, particularly in areas identified as contraceptive deserts. By making its Morning After Pill and, potentially, its combination birth control pill available in convenience stores, Cadence OTC is not only expanding its distribution network but also ensuring that its products are within easy reach of those who need them most.

While the market for contraceptives is established with several key players, Cadence OTC's approach to bypass traditional prescription barriers and directly target consumers through OTC sales is a distinctive strategy. This direct-to-consumer model, combined with a commitment to affordability and accessibility, positions Cadence OTC to make a significant impact on the contraceptive market. The company's progress with the FDA and its existing revenue run rate of $3 million underscore its potential to become a major player in the sector, despite the high barriers to entry and the competitive landscape.

Cadence OTC is making significant strides in the healthcare and pharmaceutical industry by pioneering the movement to make birth control more accessible. The company is at the forefront of enabling over-the-counter (OTC) sales of birth control without a prescription, a groundbreaking shift in the way contraceptives are distributed and accessed in the United States. With a revenue run rate of $3 million, Cadence OTC is demonstrating solid performance in its growth stage, underpinned by an exclusive partnership with the leading distributor of healthcare products across 180,000 U.S. convenience stores. This strategic partnership significantly amplifies the company's distribution capabilities and market reach.

Despite being in the pre-profit phase, Cadence OTC has successfully raised $35 million in funding, showcasing strong investor confidence in its mission and business model. The company's robust cash position, with $2.2 million in cash and cash equivilants (founder reported), provides a solid foundation for continued development and expansion efforts. This financial stability is crucial as the company navigates the complex regulatory landscape and works closely with the FDA to facilitate the Rx-to-OTC switch process for its combination birth control pill.

However, the company's monthly burn rate of $400,000 presents a challenge, highlighting the significant costs associated with product development, regulatory approval processes, and preparations for commercial launch. It is imperative for Cadence OTC to efficiently manage its resources and strategically allocate its capital to sustain its operations and achieve its ambitious goals.

Investing in Cadence OTC comes with a unique set of risks, particularly given its focus on navigating the complex regulatory landscape to bring an over-the-counter birth control pill to market. One significant risk stems from the high regulatory hurdles and approval processes associated with the pharmaceutical industry, especially for a product like over-the-counter birth control, which requires approval from the FDA through the Rx-to-OTC switch process. The outcome of this process is uncertain, and delays or denials could significantly impact the company's ability to generate revenue from this product.

Furthermore, Cadence OTC's business model is heavily reliant on its exclusive partnership with the leading distributor of healthcare products in U.S. convenience stores. While this partnership provides a strong channel for distribution, it also poses a concentration risk. Should this partnership face any disruptions or terminate, Cadence OTC may struggle to find alternative distribution channels quickly, which could adversely affect its market penetration and revenue growth.

Moreover, the company is operating at a significant loss, with a notable net income loss reported in the most recent fiscal year. This financial position indicates a high burn rate, which raises concerns about the company's sustainability and its reliance on continuous external funding to support its operations. 

Legal challenges also pose a potential risk, given the nature of Cadence OTC's product offerings. While the company currently has no lawsuits, the healthcare and pharmaceutical industries are litigious landscapes. Any future legal challenges could divert resources from product development and commercialization efforts.

Cadence OTC is at the forefront of a significant shift in the healthcare and pharmaceuticals industry, targeting the 2024 US Contraceptive market with a groundbreaking approach to birth control access. By working towards making the birth control pill available over-the-counter (OTC) without a prescription, Cadence OTC addresses a critical gap in the market, aiming to democratize access to contraception. 

The company's exclusive partnership with the leading distributor of healthcare products in 180,000 US convenience stores is a strategic move that positions Cadence OTC advantageously within its distribution channel. This partnership enables the company to potentially reach an extensive customer base across the United States, thereby increasing its market penetration and revenue opportunities.

With a revenue run rate of $3 million, Cadence OTC has demonstrated its ability to generate substantial income even in its pre-profit stage. This indicates strong demand for its products and a viable business model that can scale as the company progresses through its development phases. The significant cash reserves, amounting to $2.2 million (founder reported), further underscore the company’s financial stability and its capacity to fund ongoing operations and growth initiatives.

The FDA's Rx-to-OTC switch process represents a regulatory pathway that, if successfully navigated by Cadence OTC, could set a precedent for the availability of other prescription medications over-the-counter. Cadence OTC's engagement in this process demonstrates the company's commitment to innovation and regulatory compliance, enhancing its credibility and market leadership position.

Backed by VC investors like NJF Capital and protected by patents, Cadence OTC is well-equipped to navigate the competitive landscape and overcome high barriers to entry. Its strategic initiatives, like bringing a Morning After Pill to convenience stores in contraceptive deserts, highlight the company's mission-driven approach to addressing unmet needs in the market.

Cadence OTC's ambitious initiative to make birth control more accessible faces a steep uphill battle, both regulatory and commercially. While the company's mission is commendable, its current valuation at $73 million, juxtaposed against a revenue run rate of $3 million, signals a potentially overvalued investment (although the valuation is quite reasonable relative to the overall Healthcare & Pharma market). 

Moreover, the significant net loss of $9,919,466, alongside a monthly burn rate of $400,000, underscores the high capital intensity and operational risks involved. While the company has made strides in securing an exclusive partnership and advancing towards FDA approval for over-the-counter sale of its birth control pill, the path to profitability remains fraught with challenges. The healthcare industry's stringent regulatory environment can introduce unforeseen delays and additional costs, complicating Cadence OTC's journey to market success.

Cadence OTC is pioneering in the healthcare and pharmaceuticals industry by addressing a significant need for accessible birth control. Founded in September 2014 by Samantha Miller, Nap Hosang, and Malcolm Potts, the company is dedicated to making over-the-counter (OTC) birth control a reality. Through its innovative approach, Cadence OTC aims to remove barriers to birth control access, such as the need for a prescription, insurance, and affordability issues, particularly in contraceptive deserts across the nation.

The company is in the growth stage and has raised a substantial amount of $35 million in prior funding rounds. Cadence OTC's business model revolves around leveraging an exclusive partnership with the leading distributor of healthcare products in the U.S., covering 180,000 convenience stores. This strategic alliance positions the company to effectively reach its target market upon receiving FDA approval for its OTC birth control pill and emergency contraceptive products.

Despite being in the pre-profit phase with a significant monthly burn rate of $400,000 and a net income loss of $9,919,466 in the most recent fiscal year end, Cadence OTC has demonstrated potential with a revenue run rate of $3 million. The company plans to use the proceeds from its current crowdfunding campaign on Wefunder, which has a minimum target of $100,000 and a maximum target of $3 million, for the commercial launch of its emergency contraceptive and pregnancy test products, as well as for manufacturing and final selection studies for the OTC pill.