EZC Pak Before Shark Tank
Antibiotics are an effective way to treat bacterial infections and maladies; however, they weaken your immune system if used excessively. To strengthen the immune system, antibiotics should be used sparingly and only to treat diseases caused by bacteria. The issue has caused many citizens to suffer from a weak immune system. As a doctor himself, Sarath Malepati believed antibiotics should only be prescribed if a doctor deems it necessary. Malepati wanted to share his expertise by developing a product to boost the body’s immune system.
As a doctor, Malepati noticed many of his patients had developed some form of resistance against antibiotics. As a result, the patients were more prone to viruses as antibiotics won’t be as successful at deterring them as before. Unnecessary use of antibiotics is common in the United States, and the World Health Organization warns that antibiotic resistance in patients could lead to serious health problems. As the Medical Director of the PPC group, Malepati wanted to come up with a solution.
Another reason antibiotics shouldn’t be prescribed for any occasion is their effect on bacteria. Antibiotics help eliminate bacteria from the body but don’t work against viruses. As a result, when a patient takes antibiotics to get rid of a virus, they risk strengthening bacteria in their bodies to become immune to antibiotics. Bacteria resistant to antibiotics are called superbugs, and they could pose a serious threat to the patient.
Malepati knew his product was necessary and would become a staple in medicine. He believed doctors should prescribe EZC Pak first when a patient asks for antibiotics to see if the disease gets healed; antibiotics should only be prescribed when EZC Pak fails. Malepati decided to go on Shark Tank to find an investor willing to help EZC Pak solidify its place in the market.
EZC Pak on Shark Tank
Sarath Malepati was on season 11 of Shark Tank seeking $125,000 for 5% of his company, EZC Pak. He explained the risks of using antibiotics when it’s not necessary. Malepati demonstrated how superbugs are created and why his product, is essential. He told the sharks that EZC Pak strengthens the immune system to help eliminate viruses, unlike antibiotics which only work on bacteria. He gave each shark a sample of the product.
Malepati stated that he was a general surgeon; a surgeon that deals with appendicitis, emergency surgeries, gall bladder infections, and other maladies. He claimed that patients have developed complex infections that antibiotics couldn’t cure. As a result, those infections had to be dealt with manually, whether by amputation or another risky method.
Malepati claimed that 95% of doctors in America write antibiotic prescriptions when it isn’t clear what the patient needs. He believed that the healthcare system in the US is too customer-driven; he said the system values customer satisfaction more than the customer’s health.
Mark Cuban strongly disagreed; he argued that a patient’s family history and previous experience are more indicative of their health than anything else. Malepati attempted to refute Mark’s argument, saying that not all customers have the required health literacy to request a prescription for themselves.
Lori Greiner claimed that she was into natural products and often uses zinc when she feels a cold coming. However, as Lori was talking to Malepati, he was looking at the other sharks, which irritated Lori. She stated that she loved products in line with EZC Pak, and she would have supported it, but because Malepati was alienating her, she was out.
Shaken, Malepati continued his pitch by telling the sharks about his company’s sales. He cited that EZC Pak had made $1.2 million in the last 12 months. From the $1.2 million, the company saw a gross profit of $850,000; however, overall, the company had lost $150,000. He stated that he had spent $750,000 to generate $1.1 million in sales, 25% of which was on marketing.
Malepati claimed that no other product on the market was based on clinical data. Most similar products had the wrong ratios of vitamins or the wrong type of zinc. He stated that the product retails for $15.99-$19.99, with an 80% production margin. The product began small, only being sold in 600 stores; however, at the moment of filming, EZC Pak was in over 9,000 stores. Due to the dedication required to build the company, Malepati stopped practicing his profession.
Robert Herjavec didn’t believe the product was suitable for him, so he was out.
Daniel Lubetzky, a guest shark for the episode, wasn’t sure why the product would be the right solution for the health issue Malepati posed at the beginning. Daniel also didn’t believe Malepati was looking for a partner he would learn from, so he was out.
Mark Cuban refused to believe the product worked, so he was out.
Kevin O’Leary wanted more than 5%, so he offered $125,000 for 5% of the company and a royalty of 60 cents per unit sold in perpetuity.
Malepati counter-offered $125,000 for 5% and a royalty of $1 per unit for 36 months (3 years). Kevin countered for a $1 royalty until the $500,000 is recouped in addition to the 5% equity. After some negotiation, they agreed to keep the royalty at $1 until $450,000 is paid.
After a rough pitch, Malepati managed to leave the tank satisfied after agreeing to a deal with Mr. Wonderful.
EZC Pak Now in 2024 – The After Shark Tank Update
The deal with Kevin O’Leary never closed, and Malepati was forced to grow the company on his own. Fortunately, the episode aired a few months before the Covid-19 Pandemic fully hit the nation. When the Covid-19 pandemic struck, people everywhere were looking for a way to boost their immune systems against the virus; a job perfect for EZC Pak.
Seeing EZC Pak’s rising success, Malepati added EZC Pak+D to the company’s product line. EZC Pak+D contained all the ingredients the previous product had, but it also added Vitamin D to the mix. The product helped those with a weak immune system and lack vitamin D. Malepati also introduced “On The Go” packs which are in smaller packaging and can be taken at any time to boost your immune system.
Perhaps it was a good thing the deal Malepati made with Kevin O’Leary didn’t close, as his company had grown massively since his appearance on Shark Tank. Malepati proved the sharks wrong and made his business successful on his own. EZC Pak’s success will likely continue to grow as the Covid-19 Pandemic sees no signs of slowing down and people continue to seek ways to strengthen their immune systems. EZC Pak’s annual revenue now in 2024 is $4 million. For more updates and information about the company, visit EZC Pak’s website here.
