Medical Device Investment Opportunities

Divert-X Business Model

The Vatex strategy for Divert-X is differentiated from most mobile-Health initiatives because future revenues will be based on reimbursement from medical insurers and institutional providers - it does not rely upon patient self-pay. Vatex will show that the adoption of Divert-X will improve patient care, reduce fraud and abuse, and introduce efficiencies for healthcare providers that will reduce their costs considerably – warranting a traditional medical reimbursement path for the service and causing insurers to mandate the use of the system by pharmacies seeking in-network status.

Vatex expects a strong product adoption ramp because Divert-X addresses pressing clinical, safety, healthcare economic and law enforcement issues simultaneously. Given that trafficking and misuse of medications is a declared national healthcare emergency, Divert-X is not a product seeking a market.

This is an urgent, urgent issue that needs to be addressed promptly,” said Dr. Nora D. Volkow, director of the National Institute on Drug Abuse. "So far," she said, "the response from government and the health care industry has been inadequate.” [ref]

 Divert-X Value Proposition

stethoscope and keyboard

Access to data and analytics will be free for registered healthcare providers.

The introduction of Divert-X requires partnership with dispensing pharmacies. The insurer’s reimbursement for use of the device will be shared with the pharmacy and will represent a new source of revenue for the pharmacy - providing an incentive for product adoption.

All revenue for Divert-X will be generated from dispensing the device. Access to the data and analytics integral to Divert-X will be provided free-of-charge to registered healthcare providers.

Divert-X generates value by reducing prescription drug abuse thus reducing the excess medical spending and societal burdens of drug misuse. To illustrate the size of the impact and considering only the drain on healthcare from the abuse of prescription painkillers:

  • Two hundred million prescription per year dispensed for opiate painkillers
  • $72 Billion per year excess costs to US healthcare from painkiller abuse [ref]. (The crisis has grown substantially since this 2007 insurance industry analysis was completed. Hence, the hidden cost described here is likely an underestimate.)
  • ‘Hidden cost’ of painkiller misuse therefore averages at least $360 per prescription
  • If Divert-X reduces the overall problem by 20%, then value creation averages $72 each time the system is used for a prescription

Divert-X Product Development

The development path for Divert-X is focused on generating real-use data that quantifies the impact of the system on reducing the incidence and consequences of prescription drug abuse and trafficking. Two product trials are planned in clinical settings to allow a science-based economic proposition to be established for presentation to our prospective customer-base.

Breadth of the Investment Opportunity

Vatex is developing Divert-X to establish a robust standard-of-care for dispensing Controlled Substances.  More than 500 million prescriptions are written for Controlled Substances per year in the U.S. alone.  Both private insurers and governments are impacted by healthcare system fraud and societal expenses. As a particularly stinging example, the non-medical use of prescribed Controlled Substances is very high within the military: 18% across all active-duty services; 23% in the Army. [ref]

Startlingly, abuse suspects incurred $41 in claims for office visits and outpatient treatment for every $1 in narcotic prescription claims, says Jeffrey Sterling, Esq., who oversees the prescription-related anti-fraud operations for WellPoint, Inc.”

Prescription for Peril [ref]


Vatex is soliciting investment in order to fund the costs of Divert-X development and commercial introduction. We are happy to share additional information on multiple areas of our business without the need for an NDA. If you have an interest in exploring a medical device investment opportunity, please contact us using the form below: