Health

Cabinet Health Shark Tank: How a Sustainable Medicine Brand Won Over Two Sharks

Cabinet Health is a sustainable medicine brand that sells medication refills in compostable pouches, along with sleek reusable glass jars to store the pills in. The company was founded by Achal Patel and Russ Gong, two friends who wanted to solve the problem of plastic waste in the pharmaceutical industry. They appeared on Shark Tank Season 14 Episode 11, where they pitched their innovative business to the sharks and secured a deal with two of them.

What is Cabinet Health?

Cabinet Health is a healthcare company that provides plastic-free packaging to consumers and enterprises. The company offers over-the-counter medications such as pain relievers, allergy relief, cold and flu remedies, sleep aids, and more. Customers can order their medications online and receive them in reusable glass bottles and compostable refill pouches. The pouches are made from wood cellulose and other biomaterials, and can be disposed of in a backyard compost or a municipal compost facility. The bottles are made from 100% recyclable glass, and come with magnetic labels that can be easily swapped when refilling.

Cabinet Health claims that its products are cheaper, safer, and more effective than traditional medications. The company sources its ingredients from ethical and sustainable suppliers, and ensures that its products are free of harmful additives, fillers, or artificial colors. The company also provides educational materials and resources to help customers learn more about their health conditions and treatments.

How did Cabinet Health do on Shark Tank?

Cabinet Health entered the Shark Tank seeking $500,000 for 2.5% equity in their company, valuing it at $20 million. The founders explained that they had more than 700,000 customers, and had generated over $14 million in revenue in 2022. They also said that they were not yet profitable, but expected to break even by late 2023.

The sharks were impressed by the founders’ passion and vision, but some of them had doubts about the valuation, the margins, and the scalability of the business. Mark Cuban and Lori Greiner dropped out, saying that they did not see enough potential for growth. Robert Herjavec also dropped out, saying that he did not understand the customer acquisition strategy.

However, two sharks were interested in making a deal: Kevin O’Leary and guest shark Tony Xu, the founder and CEO of DoorDash. They offered $500,000 for 7% equity in the company, plus a 2% royalty until they recouped their investment. The founders countered with $500,000 for 5% equity and no royalty, but the sharks did not budge. After some deliberation, the founders accepted the original offer from O’Leary and Xu.

What happened to Cabinet Health after Shark Tank?

Cabinet Health is still in business today, and has continued to grow its customer base and product line. The company has also launched a subscription service that allows customers to receive their medications on a regular basis at a discounted price. The company has also partnered with HealthHavenRx, a pharmacy that fulfills prescriptions with Cabinet Health’s sustainable pouches.

The company has received positive feedback from customers who appreciate its eco-friendly and affordable approach to healthcare. The company has also received media attention from outlets such as Forbes, Green Matters, Shark Tank Success, and more.

Conclusion

Cabinet Health is a sustainable medicine brand that aims to reduce plastic waste and improve health outcomes for its customers. The company pitched its business on Shark Tank Season 14 Episode 11, where it secured a deal with Kevin O’Leary and Tony Xu for $500,000 for 7% equity plus a 2% royalty. The company is still operating today, and has expanded its product range and customer base. Cabinet Health is an example of how innovation and sustainability can go hand in hand in the healthcare industry.

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