Market Analysis

1. Problem 1.1 Historical Introduction As an individual gets older, their need for prescription drugs to treat ailments increases significantly. In recent years, the use of prescription drugs has steadily increased. From 1998-2002, the number of prescriptions written rose from 2.523 billion to 3.340 billion [1]. People over the age of 65 make up 35% of the use of prescription drugs, however, they only account for 13% of the population [2]. In addition, the elderly account for 40% of the use of nonprescription drugs [3]. The use of prescription drugs is so prevalent among people over the age of 65 that 90% of this age group take at least one medications daily and most take between three and four medications daily [3,4]. The amount of medication coupled with the physical limitations associated with aging can make remembering taking all of the medications with the proper dosage difficult. The consequences of under dosage and over dosage can be severe. A study analyzing 131,000 deaths related to prescription drug poisoning conclude that 97% of the cases analyzed resulted from medication errors. These errors included inappropriate dosages and medications taken inadvertently [5]. Furthermore, with the increase of prescription drugs on the market, the percentages of deaths related to prescription drug overdose has increased. According to a study in New Mexico, deaths from drug overdoses rose from 1.9 deaths per 100,000 deaths in 1994 to 5.3 deaths per 100,000 deaths in 2003 [6]. To avoid the adverse effects of missing or overdosing on multiple medications, different methods have been used to remember medication schedules. For those living in a nursing home, the caregivers are responsible for administering the proper medication schedule. However, for seniors that choose to live independently, no caregiver is available to remind them to take the proper medications. Many use a pill organizer that organizes all the pills to be taken during a certain day. However, most of these organizers are not automated and only serve as pill containers. A user can easily forget as there are no reminders during the day. Many times relatives of seniors take on the responsibility of reminding their loved ones to take their medicine. It can be stressful for these relatives, since they must not only keep up with their busy schedules, but the complex medicine schedules as well. Some products exist that will alert the senior when it is time to take their medicine, but it can be difficult for a loved one to confirm the medicine is being taken. 1.2 Market and Competitive Product Analysis Medication noncompliance, failure to take medication as prescribed, can be extremely dangerous. According to the American Heart Association, 10% of all hospital admissions and 23% of all nursing home admissions can be attributed to noncompliance [7]. For those who must take multiple types of medication, failure to do so properly becomes much more likely. The American Heart Association says that anywhere up to 59% of Americans fail to take their medication as prescribed when requiring multiple types of medications [7]. Senior citizens are the primary targeted market for Automatic Prescription Dispenser; as the elderly are the most likely demographic to have the need for multiple medications. Senior citizens are also more apt to fail to take medications properly because “they are more prone to visual impairment, functional disability, and cognitive dysfunction and are more likely to misunderstand verbal instructions” [8]. The use of automated medication dispensers can aide in reducing the likelihood of taking medication improperly. E-pill® currently has two types of automated medication dispensers available [9]. The MedTime XL is a small portable dispenser which does not support remote monitoring. This dispenser is priced at $249.95. Another pill dispenser available from e-pill® is the MD.2. Unlike the Med-Time XL, the MD.2 is large in size and is not portable. However, the MD.2 does support remote monitoring. The MD.2 will call the caregiver whenever medication is not dispensed or the unit is low on medication. The

MD.2 sells for $749.95, plus $29.95 a month for monitoring service. The Automatic Prescription Dispenser combines the affordability of the Med-Time XL with the advanced features of the MD.2 such as medication instructions and monitoring. With the Automatic Prescription Dispenser the care giver will not only be notified when medication is not dispensed, but will also be able to check the status of the Automatic Prescription Dispenser at any time throughout the day. Furthermore, the Automatic Prescription Dispenser is capable of supporting up to two users. This makes the Automatic Prescription Dispenser ideal for elderly couples, who would otherwise need to purchase two separate pill dispensers. 1.3 Concise Problem Statement

The current pill dispensers on the market are highly divided by price. The low end MD.2 contains no monitoring capability, while the high end has some monitoring, but costs $500 more, plus a monthly fee. The Automated Pill Dispenser will bring the monitoring features to a design that is much more affordable. The Automatic Prescription Dispenser serves as a pill organizer with smart, automatic pill dispensing ability. The Automatic Prescription Dispenser is designed to address the needs of the elderly. The Automated Prescription Dispenser allows a relative or friend of the elder in need of care to fill the dispenser with multiple medications and create a medication schedule via scheduling and monitoring software. An alert indicates when medication is ready to be taken. The Automatic Prescription Dispenser is made to be extremely user friendly for senior users. The senior user will push a button to dispense the medication and notify the monitoring software that the medication has been dispensed. If the medication has not been dispensed after a certain amount of time, the relative or friend of the elderly user is notified. Another problem that elders face is that many have poor eyesight. This can lead to trouble reading the small medication instructions on the pill container. The Automatic Prescription Dispenser offers a large well-lit display to make reading medication instructions easier for the elderly user. 1.4 Implications The Automatic Prescription Dispenser provides piece of mind to loved ones worried about their aging relatives. No longer do they have to worry about reminding their elderly parents to take their medication. By using the scheduling software, they are assured the medications are taken on time, and not accidentally taken twice. The Automatic Prescription Dispenser also aids in saving lives. A recent survey of hospital patients showed 11% were hospitalized due to medication non-adherence [10]. One study shows up to 45% of the elderly population do not take their medication as prescribed. The study cites “forgetfulness, avoidance of troublesome adverse effects, cognitive decline, physical inability to self-administer medicines, economic limitations and intentional under dosage” as possible reasons of non-adherence. By adding some high-end features such as monitoring to the lower-cost models, the automated pill dispenser may also take a significant portion of both the high end and low end market shares.

[1] Cohen, J.S., MD, “Prescription Drug Use in America: The Startling Numbers and Their Implications,” MedicationSense.com. 2003. http://www.medicationsense.com/articles/july_sept_03/prescript_drug_use.html [2] Metlay, J. P., MD, PhD, Cohen, A, PhD, Polsky, D, PhD, Kimmel, S., E., MD, MSCE, Koppel, R, PhD, and Hennessy, S., PharmD, PhD, “Medication Safety in Older Adults: Home-Based Practice Patterns,” Journal of American Geriatrics Society, vol. 53, pp 976-982, 2005. [3] Fulton, M.M., “Polypharmacy in the elderly: A literature review,” Journal of the American Academy of Nurse Practitioners, vol. 17 issue 4, pp.123-132, 2005. [4] Geller, A.M. and Zenick, H., “Aging and the Environment: A Research Framework,”Environmental Health Perspectives, vol. 113 number 9, pp. 1257-1262, 2005. [5] “New USCD Research Shows Deadly Drug Mistakes Spike at the Start of Each Month, Suggests Pharmacy Errors,” Science Daily. 2005. http://www.sciencedaily.com/releases/2005/01/050106111344.htm [6] Preidt, R., “Fatal ODs on Rx Meds a Growing Problem,” MedicineNet.com. 2006. http://www.medicinenet.com/script/main/art.asp?articlekey=61140 [7] “Statistics You Need to Know” (2007, Jan. 24). American Heart Association. [Online]. Available: http://www.americanheart.org/presenter.jhtml?identifier=107 [8] Ratra, G. “Drug Therapy and the Elderly,” Careguide@Home. 2007. http://www.careguideathome.com/modules.php?op=modload&name=CG_Resources&file=article&sid=1 493 [9] e-pill Medication Reminders. (2007, Jan. 24). e-pill®. [Online]. Available: http://www.epill.com/ [10] MacLaughlin, E.J., Raehl, C. L., Treadway, A. K., Sterling, T., L., Zoller, D. P., and Bond, C., A., “Assessing medication adherence in the elderly which tools to use in clinical practice?” Drugs and Aging, vol. 22, pp 231-255, 2005.