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How Conversion Labs Is Building Its Telemedicine Business During COVID-19

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How Conversion Labs Is Building Its Telemedicine Business During COVID-19

Interest in telemedicine has soared during the coronavirus pandemic as health care patients sought continuity during the crisis by going virtual.

That’s according to Conversion Labs Inc (OTCQB: CVLBD) CEO Justin Schreiber, who told Benzinga his business tripled as the coronavirus accelerated telemedicine adoption.

“Like overnight, our business doubled or tripled. And it is interesting because we see a lot of these trends sustaining.”

About Conversion Labs: Conversion Labs is an e-commerce and telemedicine company with a portfolio of commercial-stage, over-the-counter health and wellness products.

Founded in 2019, the company uses a proprietary technology infrastructure that combines social media and search channels to provide physician consultations, as well as sell, dispense and ship prescription drugs directly to U.S. consumers.

Since its launch, the the company has benefited from the emerging popularity of telemedicine, Schreiber said.

“Most people are switching from buying products in traditional brick-and-mortar stores to an online environment. This trend is likely to continue,” he said. 

The overall cost of care has decreased as Conversion Labs brings unit economics to the telemedicine space, the CEO said. 

“Our goal is to make money and do everything best-in-class when it comes to lowering conversion rates, acquisition costs and maximizing lifetime value for every single patient.”

Conversion's Core Product Portfolio: “The more exciting side of telemedicine is the direct-to-consumer side, where you have companies like us, Ro, and Hims, which just went public,” Schreiber said.

Consultations are at the center of Conversion’s business model, the CEO said. 

This is the firm’s way of planting the seeds for disruption in other areas of the business, he said. 

“We’re playing in this whole lifestyle space,” Schreiber said.

“Hims is going to do $130 million this year, and it’s taken them hundreds of millions to get there. We’re going to get that run rate within the next six months, and it’s taken me $10 to $15 million to get there.”

Other parts of the firm’s business model include the provision of prescriptions and primary care through Veritas MD, a telehealth platform.

Conversion’s brands include Shapiro MD, with personalized treatment plans for hair loss; Nava MD, for teledermatology and medical grade skincare; SOS RX, with prescription medications for disaster scenarios; and Rex MD, a men’s telemedicine and wellness solution.

Conversion’s two major differentiators are experience and technology, the company's CEO said. 

“The human expertise we’ve put together over five years, along with the technology that we’ve been building, and the relationships that we have with companies like Facebook and Google, it is something that you can’t recreate in just six months. It would take you years.”

Innovation In Telemedicine: The prospects for growth in telemedicine are endless, Schreiber said. 

“People are now realizing that they can go see a doctor and get a script from their living room or office,” the CEO said. “It’s cheaper.”

Conversion recentlyraised money from David Blitzer, global head at Blackstone’s Tactical Opportunities group and Management Committee.

The funds will help fuel efforts to increase operational efficiency in acquisition and conversion, as well as add new products and to list on the Nasdaq stock exchange, according to Conversion. 

“We’re going to be launching compounded topical drugs for men and women’s hair loss,” Schreiber said.

“That’s the first time a drug and medical treatment has been available to most women, across the United States, for treating thinning hair. That’s through our Shapiro MD brand.”

To learn more about Conversion Labs, click here.

 

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