Diabetes "total solutions" company Sanare partners with ADA plus makes three diabetes acquisitions – June 22, 2011

Executive Highlights

Coming out of stealth mode, Sanare recently announced that it (along with its new brand BrightSky) has become a National Strategic Partner of the American Diabetes Association. In this partnership, Sanare is sponsoring the ADA’s new resource for newly diagnosed people with type 2 diabetes, "Living with Type 2 Diabetes," along with Boehringer Ingelheim, Kraft Foods, McNeil Nutritionals (the makers of Splenda), and the Walmart Foundation. Sanare will work with the ADA to implement Diabetes Review, a free, one-hour program promoting diabetes education, in 10 cities in the US.

Specifically, as a "total solutions" company, Sanare will offer what looks to be an innovative mix of medical supplies/medications, management tools, and resources for patients, physicians, and providers. For patients, Sanare will give blood glucose monitoring and treatment supplies, telephonic coaching, in-person individual and group coaching, and a web-based portal for the management of diabetes. Notably, Sanare is working to partner or create wireless glucose meter systems that will upload data directly to the company’s cloud-based analytics engine for patients, physicians, and providers to view. This would certainly make tracking patterns easier. Meanwhile, Sanare plans to provide physicians with a portal to help manage their patients with diabetes, providing information on gaps in care for individual patients, pre-visit care planning, and reminders to check up on patients who they have not seen for over a year. Particularly if such a system could address basics like ensuring patients show up for appointments (or reschedule if needed) and ensuring patients have the right blood tests before appointments so that they can discuss real-time progress and needs, this could help patients and practices significantly. As we understand it, Sanare will also provide payers with analytic reports of its population of diabetes patients, as well as a number of other tools and services. Anything in our view that can help payers better understand the enormous needs of patients is a positive.

Thus far, the company has made good progress – Bertram Capital committed $100 million of equity to the company six months ago, and Sanare has already acquired three diabetes medical equipment suppliers (Doctor Diabetic Supplies, Great Lakes Medical Supply, and Omnis Health), making it the fourth largest DME overnight (Liberty Medical, owned by Medco, is #1, CCS (Tampa) is #2, and Simplex (Nashville) is #3). Though Sanare is still privately owned and thus does not report on its financials, it has reportedly already generated over $100 million of revenue. We welcome Sanare’s entry into the field, as we believe its services will ultimately help improve adherence, and thus, improve outcomes.

• Sanare announced that it has become a National Strategic Partner of the American Diabetes Association. ADA’s National Strategic Partners are defined on the organization’s website as sponsors that "work in partnership with the ADA to achieve [its] goals and stop diabetes." It is our understanding that becoming a National Strategic Partner entails two requirements: 1) having business practices consistent with the ADA’s mission; and 2) donating to the ADA and securing a relationship with the ADA to partner to change the lives of individuals with diabetes in some specific way. For context, other National Strategic Partners of the ADA include (but are not limited to) Bravo Health (a provider of Medicare health and prescription drug plans), Colgate, Gold’s Gym, Rite-Aid, and McNeil Nutritionals; they have partnered with the ADA on programs such as Step Out: Walk to Fight Diabetes, Tour de Cure, and the ADA’s Recipe of the Day page.
• Sanare recently acquired three diabetic medical equipment suppliers: Doctor Diabetic Supplies, Great Lakes Medical Supply, and Omnis Health. As background, Doctor Diabetic Supplies (to be renamed BrightSky) is a large direct-to-consumer, Medicare- reimbursed, diabetes-focused company serving approximately 110,000 patients over the age of 65. Meanwhile, Great Lakes Medical Supply holds about 70,000 patient relationships, identifying its patients through contracts with physicians and regional health plans which want access to not only diabetic supplies, but also to education for their patients. Great Lakes, through its relationship with the regional ADA, has hundreds of certified diabetes educators and its own educational staff that not only educate individuals about their diabetes, but help them to adhere to their treatment plans; the company says it has demonstrated better clinical outcomes over time and we look forward to seeing this published. This approach of working closely with payers, physicians and individuals, themselves, who live and work with diabetes is the underpinning of Sanare’s approach. To expand on Great Lake Medical Supply’s current offerings, Sanare will add health coaching (behavior change methodologies), additional technologies to encourage patient self-management, diabetes registries for physicians, and clinical analytics for health plans. As we understand it, the systems are in place now and the initial analytics are free to health plans and to patients. Health plans will be able to buy up to custom analytics for which they will pay – valuable information, we assume, about a costly population. Lastly, Sanare acquired Omnis, a wholesaler of diabetic supplies and itself, the exclusive distributor of Apex Bio’s (a Taiwan-based manufacturer) Embrace blood glucose monitoring system (a "talking" meter with associated blood glucose strips) that are among the most widely distributed meters and strips into the Medicare DME market. To date, Sanare says that about 500,000 systems are on the market (presumably fewer are in use, but this is a great start by any measure). By acquiring Omnis, Sanare gains a hedge against the downward price spiral in the SMBG market. Reportedly, Sanare has already conducted a clinical trial of the Omnis Embrace system to be able to demonstrate to its customers the superiority of its SMBG system. This study sounds like it will be available soon – in order to garner a claim on this front, this data must be available to show FDA. While we know Medicare is under pressure to pay less per patient in treatment costs, we are well aware that the biggest costs for patients with diabetes come from longer-term complications, which can be avoided by more aggressive care earlier in disease progression. We like Sanare’s approach on the "whole patient" and will be eager to see next steps in its strategy.

--by Vincent Wu and Kelly Close

BERTRAM CAPITAL PORTFOLIO COMPANY, SANARE, LLC, ANNOUNCES NEW CEO

Reno, Nevada – September 7, 2011 – Tim Hargarten, Chairman of the Board of Sanare LLC, has been named Sanare’s CEO.

Hargarten has over twenty years of leadership experience in healthcare services and information technology. Most recently, Hargarten served as President and CEO of Access MediQuip, the nation’s largest medical device benefit management company, working with more than 2,000 hospitals and surgery centers and delivering cost savings to leading healthcare insurers. Prior to Access MediQuip, Hargarten was Chairman and CEO of NaviNet (formerly NaviMedix), the nation’s largest real-time healthcare communications network with more than 800,000 participating providers. Hargarten has served as the Chairman of Sanare’s Board since May 2011.

"Diabetes can be an insidious, burdensome and often isolating condition, but it no longer has to be that way," Hargarten said. "Our team is committed to delivering innovative products and services that enable patients to gain more control over their condition and achieve better health outcomes at a lower cost." In addition to reducing the cost of diabetic testing supplies, Sanare delivers patient compliance tools such as education, coaching, and online and social media engagement and provider support tools such as HEDIS reporting and patient reporting. Over one million people with diabetes use Sanare’s products, and Sanare serves more than 100,000 treating physicians.

Sanare is actively seeking partnership opportunities and add-on acquisitions to complement its strategy of providing both care management services that target people with diabetes and healthcare cost containment solutions that target payors that pay for patients' care.

ABOUT SANARE

Launched in 2010, Sanare is an innovative healthcare products and services company that provides care management solutions designed to improve the health of people with diabetes while reducing the cost of their medical care. Sanare achieves these goals through more frequent diagnostic testing, education, and advocacy of care with key stakeholders, including patients, physicians, caregivers, and payors. Proprietary tools, technology and resources put Sanare at the forefront of total diabetes health.

About Bertram Capital

Bertram Capital is a private equity investment firm with more than $850 million in capital under management. Founded in 2006, Bertram Capital’s mission is to build value for equity holders, employees, customers, and partners by helping already profitable companies realize their full potential. View www.bertramcapital.com for more information.

CONTACT:

David Hellier

Bertram Capital

Phone: (650) 358-5000

Email: pr@bertramcapital.com

BERTRAM CAPITAL PORTFOLIO COMPANY, SANARE, LLC, ANNOUNCES NEW CHAIRMAN

Reno, Nevada – June 7, 2011 – The Board of Directors of Sanare, LLC announced today the election of Tim Hargarten as the company’s Chairman of the Board.

Hargarten has over twenty years of leadership experience in healthcare services and information technology. Most recently, Hargarten served as President and CEO of Access MediQuip, the nation’s largest medical device benefit management company, working with more than 2,000 hospitals and surgery centers and delivering cost savings to leading healthcare insurers. Prior to Access MediQuip, Hargarten was Chairman and CEO of NaviNet (formerly NaviMedix), the nation’s largest real-time healthcare communications network with more than 800,000 participating providers.

"Tim is a respected leader and executive in the healthcare community," said Sanare CEO Dr. Ron Geraty. "His experience bringing healthcare information technology tools and cost containment solutions to health insurers will be valuable for Sanare. I look forward to working with Tim and the rest of the Board to realize Sanare’s goal of empowering people living with diabetes to achieve better health outcomes while simultaneously reducing the cost of diabetes management."

Hargarten said, "I’m excited to be a part of Sanare and its bold mission to provide integrated diabetes solutions to patients, providers and health insurers. I look forward to working with this talented team as it operationalizes Sanare’s innovative and expansive technology and service-oriented platform. Sanare will change the lives of millions of people living with this chronic condition, and I’m honored to serve as its Chairman."

ABOUT SANARE

Launched in 2010, Sanare is an innovative healthcare products and services company that provides care management solutions designed to improve the health of people with diabetes while reducing the cost of their medical care. Sanare achieves these goals through more frequent diagnostic testing, education, and advocacy of care with key stakeholders, including patients, physicians, caregivers, and payors. Proprietary tools, technology and resources put Sanare at the forefront of total diabetes health.

About Bertram Capital

Bertram Capital is a private equity investment firm with more than $850 million in capital under management. Founded in 2006, Bertram Capital’s mission is to build value for equity holders, employees, customers, and partners by helping already profitable companies realize their full potential. View Bertram Capital for more information.

CONTACT:

David Hellier

Bertram Capital

Phone: (650) 358-5000

Email: pr@bertramcapital.com

Sanare and BrightSky Announce National Strategic Partnership with American Diabetes Association

RENO, Nev., April 21, 2011 /PRNewswire/ -- Sanare, LLC, a leading provider of care management solutions for people with diabetes, and its new consumer brand, BrightSky, have become National Strategic Partners of the American Diabetes Association.®

The sponsorship makes Sanare and BrightSky founding sponsors of the American Diabetes Association's newly diagnosed patient initiative called "Living With Type 2 Diabetes." The program provides new patients with resources and information about living with type 2 diabetes at regular intervals over a 12-month period.

"The Association's proactive approach to diabetes education aligns well with the mission of both Sanare and BrightSky to empower patients to manage their diabetes," said Dr. Ron Geraty, Sanare CEO. "Both parties are focused on creating better health outcomes for people living with diabetes and on lowering health care costs. We're very excited and honored to be working with the American Diabetes Association in this capacity."

Additionally, Sanare/BrightSky and the Association will be implementing a free, one-hour educational program, Diabetes Review (SM), in 10 strategic metropolitan areas throughout the country. This program, initially launched in Southeastern Michigan in 2006, promotes diabetes education and encourages attendees to attend in-depth diabetes education via the Association's recognized education programs. Diabetes Review has helped provide free education to over 5,500 people, with 71% (1) of attendees requesting to attend or have already attended further diabetes education.

Sanare recently acquired Great Lakes Medical Supply (GLMS) and Doctor Diabetic Supply, and on April 12th introduced BrightSky, a comprehensive, patient-focused brand designed to inspire total health for people living with diabetes. "BrightSky will change patient behaviors, improve physician/care team collaboration, and increase transparency at every stage of diabetes management," said Geraty. "This deeper relationship with the Association is perfectly aligned with what we're doing."

This new relationship is further supported by Sanare's pledge to send children to diabetes camp, one of the best educational tools for children and teens with diabetes. GLMS, now part of BrightSky, has provided camp scholarships enabling over 140 children to attend the Association's Camp Midicha, located in Southeastern Michigan.

ABOUT SANARE

Launched in 2010, Sanare is an innovative healthcare products and services company that provides care management solutions designed to improve the health of people with diabetes while reducing the cost of their medical care. Sanare achieves these goals through more frequent diagnostic testing, education, and advocacy of care with key stakeholders, including patients, physicians, caregivers, and payors. Proprietary tools, technology and resources put Sanare at the forefront of total diabetes health.

MEDIA CONTACT:

CLAUDIO ARAUJO / Sanare

Phone: 305.572.0807

Email: caraujo@doctordiabetic.com

Sanare Launches BrightSky, a New Consumer Brand Serving People Living With Diabetes

RENO, Nev., April 14, 2011 /PRNewswire/ -- Sanare, LLC, a leading provider of care management solutions for people with diabetes, announced today the launch of its new consumer brand, BrightSky.

BrightSky is the backbone of Sanare's value proposition to patients, health care professionals, and health plans. The offering includes personalized access to educational information, health coaching, participation in communities of interest, advanced analytics, and a comprehensive selection of products for diabetes management. Sanare CEO Dr. Ron Geraty explained, "We're bringing next-generation answers to the kinds of problems that people living with diabetes are facing today. The technology we're introducing, and the comprehensive way we're delivering it, is completely new. It's how BrightSky will strip waste, cost, and frustration from diabetes care."

The name BrightSky derives from "dia" in Greek mythology, and was chosen because it connotes inspiration, hope, and a promising future. The name is consistent with the patient-centered approach the new brand takes. "For us," said Dr. Geraty, "the ultimate goal is to inspire total health for people living with diabetes. We can achieve that in a number of ways." Initiatives include a robust online community, closer connections that empower physicians to stay actively involved with care teams, and more transparent reporting that shows measurable value to payors. "BrightSky is a total solution," Geraty added. "A one-stop-shop that will change the course of this disease for thousands of people everywhere."

The new brand was introduced to customers this week and will roll out over the next few months.

ABOUT SANARE

Launched in 2010, Sanare is an innovative healthcare products and services company that provides care management solutions designed to improve the health of people with diabetes while reducing the cost of their medical care. Sanare achieves these goals through more frequent diagnostic testing, education, and advocacy of care with key stakeholders, including patients, physicians, caregivers, and payors. Proprietary tools, technology and resources put Sanare at the forefront of total diabetes health.

MEDIA CONTACT:

CLAUDIO ARAUJO / Sanare

Phone: 305.572.0807

Email: caraujo@doctordiabetic.com