As biometrics has evolved from the stuff of James Bond plot lines to an increasingly common security tool, the healthcare industry is beginning to take an interest to better protect patient data and prevent ID theft. One healthcare entrepreneur has used fingerprint identification as a cornerstone of its medication dispensing technology. Medbox Inc. (OTC: MDBX) uses biometrics to amp up security for the way marijuana and potentially other controlled substances are sold and is seeing its profile rise as more states pass medical marijuana legislation.
Here’s how its pharmacy dispensing technology works. New customers fill out an application and present a state issued medical marijuana card to pharmacists. They give a fingerprint sample so their ID can be verified with each purchase. Using biometrics, the dispensing units control how much is allotted to each customer.
About 18 states have passed legislation allowing for medical marijuana, so Bedrick sees a huge potential for the increased sale of its technology in the coming months and years. It is also advising companies on license applications such as in Colorado and Washington state where lawmakers passed legislation to legalize recreational use of marijuana. It’s expecting so much business that it has set up a dispensing management division to work with help dispensing units manage day-to-day operations for $10,000 a month for each location.
The company is listed on the volatile OTC market and its shareprice has bounced up and down in the past year from a high of $205 on November 15 to its current level of $30.
The volatility regarding the company has not been limited to the shareprice. Uncertainty over how medical and recreational marijuana is dispensed has forced the company to repeatedly clarify how its technology is used. Although its automated vending machines have been adopted by Michigan medical facilities to allow patients to obtain their prescription medication from the without stopping at a pharmacy, it does not currently offer that service for dispensing marijuana.
Although most of the focus has been on medical marijuana, Medbox CEO Bruce Bedrick also views its dispensing technology as a way to disrupt how pharmacies manage inventory and dispense drugs, by making the process faster. Last week it expanded its medication dispensing machines to Michigan medical facilities.
In March, Medbox’s deal for a 50 percent stake in Michigan-based MedVend paved the way for its expansion in the state. Last month, MedBox announced the MedVend machines are located in the waiting room of medical facilities in Michigan. The medications are available in the machines shortly after they’re prescribed. The idea is that patients can start taking their medication without having to make a separate trip to a pharmacy. The vending machines also use a smart billing technology, according to a company statement. If the co-pay for a medicine is more expensive than the actual medicine, the lesser cost will be charged to the patient.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
In addition to pharmacies, the company works with urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities and medical groups.
The medical marijuana business has been referred to as a modern day goldrush opportunity for entrepreneurs, and the size of the market is expected to grow to $5 billion by 2018.
[Photo credit: Finger Print Iris Scan photo from BigStock]
