Mainebiz

W W W. M A I N E B I Z . B I Z 27 O C T O B E R 5 , 2 0 1 5 In July, Bitterman and 32 others invested $52.3 million in Vets First Choice, bringing its total invest- ment to date to $74.5 million in fi ve rounds. Shaw says revenues have doubled each year over the past four years, and he expects another doubling this year. He plans to add 60 employees this year. e company also has been named several times to Inc. magazine's 5,000 fastest-growing private companies list. But as Bitterman says, Vets First Choice brought a disruptive business model to an industry known for strong relationships between large manufactur- ers and distributors. Shaw founded Direct Vet Marketing Inc., which is doing business as Vets First Choice, in 2010. e com- pany has partnered with more than 12,000 veterinary practices to deliver pharmaceuticals, therapeutic diets and compounded medications to pet owners' homes, typically at competitive prices as it has more volume- buying power than a typical single veterinary practice. "I think that the founding of Vets First Choice would be one of my proud moments," Shaw, 37, says of his career so far. "But this cat has nine lives. We defi ed a lot of odds out of the gate. ere are huge, well-established industry relationships that are hard to break into." He adds, " e regulatory dynamics are diffi - cult because we're applying the practice of human pharmacy exclusively for veterinary medicine. Our patients don't have Social Security numbers or birth certifi cates. ey have breeds. It was very challeng- ing to fi ght through some of the fundamental infra- structure to do what we needed to do. It broke the convention of how things work." While the notions of a central-fi ll pharmacy or technology-enabled prescriptions are not new, he says, it took the application of technology to make it work online in the veterinary world. His company broke into the business with persistence and perseverance. It demonstrated its services to a small group of custom- ers, gained support, grew the company, gained more support and built up incrementally over time, he says. "Our manufacturers have really embraced us and see us as an important part of the future of veteri- nary pharmacy," says Shaw. "So we've come a long way in fi ve years." He says the company in some cases is managing 150% of the pharmacy aspect of a veterinarian's practice. at includes the drugs the vet practice is selling on its own, as well as Vets First Choice helping bring back clients who were buying their goods elsewhere. Future services include reminding owners to refi ll prescriptions and helping them better manage their pet's health. e company is operating around the break-even point, investing the appropriate amount of capital to grow at each stage, Shaw says. It is using the big investment from July to accelerate critical aspects of its service, including building the sales organization, providing account management services, building out technology and looking at business development opportunities, including acquisitions and at some point, expanding overseas. e company uses technology heavily for inventory control and other business aspects. Bitterman says Shaw has been smart in surround- ing himself with strong people. " e fi rst thing that strikes you is deep, unparalleled knowledge about the industry and every facet of the business," he says. Shaw says starting a business is hard and it takes courage. "If you're going to take that step, it's better to take bigger, well-calculated risks," he advises. "Set an expectation of what great looks like and sur- round yourself with that frame of reference." He says deciding to make Maine his home stoked his entrepreneurial instincts. "It forces another level of creativity," he says. With three majors at Bates College — political science, biology and environmental science — he wrote a thesis on how the nonprofi t research com- munity in Maine was able to eff ectively leverage facility funding to attract more research grants. He has served as a trustee of e Jackson Laboratory and Maine Huts & Trails. Shaw knew early on that he had entrepreneurial leanings, and he especially respected veterinarians as small business owners and as medical practitioners. "I had the opportunity to bear witness to that through my father's experiences at IDEXX. I grew up around the IDEXX business," s ays Shaw, whose father, David Shaw, founded IDEXX Laboratories Inc. in Westbrook. e two also run Black Point Group, a private investment partnership focused on life sciences, technology and other companies and which has invested in Vets First Choice. "I like what we do," says Shaw of Vets First Choice. " is is the convergence of healthcare, technology, direct marketing and data services. It's really interesting." Lori ValiGra, Mainebiz senior writer, can be reached a t l V a l i G r a @ m a i n e b i z . b i z a n d @ LVa l i G r a BUSINESS | COMMUNICATIONS – NESCom | COUNSELING | CRIMINAL JUSTICE | EDUCATION | HEALTH | PHARMACY | SCIENCE & HUMANITIES BANGOR MAINE | 1 College Circle, Bangor | 207.941.7000r | NORTHERN MAINE | SOUTHERN MAINE | HUSSON ONLINE Husson University has a long and distinguished history of preparing Maine's professionals. For over 117 years, the faculty, staff and leaders of Husson University have dedicated themselves to transforming young adults through access to higher education that leads to professional success, regardless of students' economic circumstances. Husson delivers a superb, affordable education to over 3,400 students on our 208-acre Bangor campus, and satellite campuses in Northern and Southern Maine. In addition to having the largest business school in the state, Husson is one of Maine's leading educators of healthcare professionals. Our curricula emphasizes the importance of delivering care to underserved rural communities. We invite you to join us as we work to grow Maine's economy by preparing the business leaders of tomorrow. If you are someone who is interested in learning more about Husson University and how our programs lead to professional success, visit us at husson.edu.

• Cover