Care2Care International

Early Stage

Enabling delivery of affordable medications for healthcare plans and individuals

Analytics

Raised to Date: Raised: $1,000

Aggregate Commitments $

Platform

TycoonInvest

Start Date

09/30/2021

Close Date

01/02/2022

Min. Goal

$10,000

Max. Goal

$400,000

Min. Investment

$200

Security Type

Convertible Note

Funding Type

RegCF

Series

Pre-Seed

Valuation Cap

$2,000,000

Discount Rate

20%

Rolling Commitments $

Status
Not Funded
Reporting Date

01/03/2022

Days Remaining
Not Funded
% of Min. Goal

10%

% of Max. Goal

0%

Likelihood of Max
Not Funded
Avg. Daily Raise

$11

Momentum
Not Funded
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Location

Portsmouth, New Hampshire

Industry

Healthcare & Pharmaceuticals

Tech Sector

HealthTech

Distribution Model

B2B

Margin

Low

Capital Intensity

High

Business Type

Growth

Care2Care International, with a valuation of $1.54 million, is raising funds on TycoonInvest. It is a premium provider of internationally sourced affordable medications. The company enables the delivery of these medications for individuals and healthcare plans at affordable prices. Care2Care International is led by an experienced team and expects to reach a net operating income of $680,000 and total revenue of $1.1 million by year three. Andre Wencker and Pascal Orliac founded Care2Care International in February 2021. The current crowdfunding campaign has a minimum target of $10,000 and a maximum target of $400,000. The campaign proceeds will be used for marketing, research and development, manufacturing, future wages, and general working capital.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$0

$0

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$100

$0

Accounts Receivable

$0

$0

Total Assets

$100

$0

Short-Term Debt

$0

$0

Long-Term Debt

$0

$0

Total Liabilities

$0

$0

Financials as of: 09/30/2021
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Synopsis

Prescription drug prices in the US are on the rise. Approximately 79% of Americans think prescription drug prices are unreasonable, and 26% are worried they can’t afford the prescription drugs they need. Soaring prices are particularly frustrating when compared to drug costs in other countries. Americans pay an average of four times more for prescription drugs than those in other countries. In some cases, Americans can pay as much as 67 times more for the same drug. 

Care2Care International hopes to solve this problem by shipping prescription drugs from Europe and Canada to the United States. Care2Care plans to work with employers, employee benefits consultants, and health plan administrators to offer pass-through drug ordering to individual Americans. Both employees and employers will save a great deal on drug costs, and Care2Care will pocket a percentage of those savings. However, Care2Care has not begun operating yet, and importing prescription drugs from other countries for commercial purposes is currently illegal. 

Care2Care International’s current raise on TycoonInvest has been rated an Underweight Deal by the KingsCrowd investment team. 

Price

Care2Care International is raising capital via a convertible note at a $1.54 million pre-money valuation. That’s a lower price than the vast majority of crowdfunding investment opportunities, which is understandable given that Care2Care has zero traction or validation of this business model. This price is a mixed bag. It is very low, which could be a boon for investors if Care2Care is ultimately successful. On the other hand, Care2Care is basically saying that the mere idea of shipping drugs internationally is worth more than $1 million. This valuation seems dubious given that the concept is currently illegal.

Market

The market for prescription drugs is huge. Americans spent more than $500 billion on prescription drugs in 2020, a year-over-year growth rate of 4.9%. The global prescription drugs market is worth more than $1.5 trillion. It’s expected to grow 8.9% annually over the next five years. Pharmaceuticals is a huge and growing industry with plenty of room for innovation. 

However, Care2Care International’s intended plan of importing prescription drugs from other countries into the US is a non-starter. Commercial importation of drugs is currently illegal. In fact, even personal importation of drugs is illegal, though the FDA usually turns a blind eye to individuals importing a short-term supply for their own healthcare. The Trump administration put the Safe Importation Action Plan into motion, which aims to create options for importing foreign drugs. The FDA is also currently working to establish a pathway for imports from Canada. However, it doesn’t seem that Care2Care could implement its business plan anytime soon, and its approach will probably always remain highly regulated and subject to intense legal scrutiny. As a result, Care2Care International’s market for its current business plan is essentially zero.

Team

Care2Care International co-founder and CEO André Wencker is a health insurance professional. He has decades of experience in senior leadership positions in the French health insurance industry. Wencker holds a master’s degree from one of Europe’s top business schools, HEC Paris, and is also a member of the French Institute of Actuaries. 

Pascal Orliac — Care2Care’s second co-founder and CMO — has a marketing and human resources (HR) background. After founding two boat-related companies in the 1980s, Orliac entered the corporate world and held various marketing and HR leadership roles at French companies over the last several decades. Most recently, he worked as the vice president of global human resources for Goss International. Orliac currently serves as a lecturer in the business school at the University of New Hampshire in addition to his work with Care2Care. 

Care2Care’s two founders have a great deal of business experience, some in relevant health-related industries. However, neither has managed a young company recently. Both seem to work on Care2Care part-time, and neither has the legal or government background likely necessary to navigate the complex regulatory environment of international drug importation. The Care2Care team has many gaps to fill in before the company could begin true operation.

Differentiators

At a high level, Care2Care International’s business plan is certainly disruptive. Prescription drug costs in the US are significantly higher than in other countries. Bringing in drugs from other countries could substantially decrease both employer and individual health care costs. At issue, once again, is the legality of this approach. While it appears that the FDA is potentially forging a path toward legal Canadian imports, European imports seem far off. 

There are other companies supposedly importing prescription drugs from other countries, like RxManage. It’s unclear how these companies are operating given the seeming illegality of commercial drug imports. It seems Care2Care International is replicating a concept that already exists, so it may not attract much attention for originality. The company is focused on importing drugs from Europe, while competitors primarily leverage Canada or New Zealand. Care2Care believes this European import strategy will be more cost-effective but doesn’t yet have operating history to prove that claim.

In sum, it’s too soon to say whether Care2Care’s fundamental business model is viable, much less disruptive. It’s similarly too soon to assess whether the company will differ substantially from competitors.

Performance

It appears that Care2Care International is primarily a concept with no operating history at this point. The company’s financial statements are blank. There are also questions about the company’s timeline. Care2Care has supposedly been in business for several years, per the founders’ LinkedIn profiles, but financial statements list an inception date of February 2021. There seems to be a separate France-registered entity that has been around longer, but financials for that business aren’t reported. In short, Care2Care has no performance to assess thus far. 

Risks

Care2Care International is an extremely risky investment. The company has no operating history. Even more concerning, it has operating plans that are subject to significant regulatory and legal risk. Plus, Care2Care’s team is small and not fully dedicated. It will probably take a long time to establish reliable distribution channels, and there’s no proof that Care2Care is capable of generating the investment capital needed to bring the business to life. 

Bearish Outlook

There are many red flags about Care2Care International. Most importantly, it’s not clear that the company’s operating plans are legal. The FDA does not approve international prescription drugs, so importing them is not allowed. While the FDA appears to be making progress toward allowing imports from Canada, there’s no clear timeline on when those imports will become possible. European imports seem even further from approval. If Care2Care directly addressed these issues on its raise page and offered solid reasoning as to why the business plan still makes sense, that could be reassuring to investors. However, Care2Care doesn’t mention these regulatory issues at all, which seems suspicious.

Even if Care2Care is able to import prescriptions legally, the company is still operating in a heavily regulated, ever-changing legal environment that creates massive risk. It could take years to navigate the FDA’s red tape, and missteps could lead to serious lawsuits. Care2Care simply has not demonstrated any awareness of these issues or offered any plans to mitigate the risk. 

In addition to these serious concerns, investors might also worry about factors more typical of a startup in any industry. Care2Care’s team is small and doesn’t seem to be dedicated full-time. The company has zero financial history to evaluate. There’s no evidence of an investment in proper branding or marketing efforts, which will seriously hamper Care2Care’s ability to win clients. All put together, Care2Care does not seem like an advisable investment. 

Bullish Outlook

Care2Care International’s concept is admittedly disruptive and solves a major problem for Americans. Prescription drugs are too expensive, and buying cheaper lookalikes from other countries makes sense. If the company manages to find success, its valuation would greatly benefit investors. However, that’s before considering the nightmarish regulatory complexity of drug imports, which Care2Care doesn’t address at all in its raise materials. Without a clearer path forward, there’s little reason to assume that Care2Care will be successful. 

Executive Summary

Care2Care International intends to partner with employers and health insurance plan administrators to offer low-cost prescription drugs imported from Europe and Canada. This concept would solve a major problem. Americans are suffering from high prescription drug prices while those in other countries get the same medications at a fraction of the price. It’s not that simple, though. The FDA is still in the process of working toward drug imports from Canada, and there currently doesn’t seem to be a legal path to import medications from Europe. Care2Care’s founders do have favorable experience, but they do not seem to be committed full-time. Care2Care’s valuation seems appealing, but the company has zero operating history. It doesn’t give very many details about next steps to grow the business and seems to be little more than an idea at this point. Therefore, Care2Care International has been rated an Underweight Deal. 

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com

October 21, 2021

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Care2Care International on TycoonInvest 2021
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Platform: TycoonInvest
Security Type: Convertible Note
Valuation: $2,000,000

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