Capital Rx Secures $50 Million in Series B Financing to Accelerate Growth of Pharmacy Technology Platform
NEW YORK--(BUSINESS WIRE)--Capital Rx, the fastest-growing pharmacy benefit manager in the U.S., announced today that it has raised $50 million in Series B financing. The funding round is led by Transformation Capital, with participation from Edison Partners, who led Capital Rx’s Series A financing in 2019.
“Capital Rx started its mission three years ago to change the way prescriptions are priced and serviced to create enduring social change,” said AJ Loiacono, CEO at Capital Rx. “With this capital raise, we are excited to see our vision and technology accelerate an era of positive disruption in healthcare.”
Following the recent launch of JUDI™, the industry’s first Enterprise Pharmacy Platform and fully-integrated patient mobile app, Capital Rx will continue to expand the platform’s capabilities, including leveraging AI to improve clinical care. “The JUDI™ platform represents a significant leap forward in pharmacy benefit management,” said Jared Kesselheim, Managing Partner at Transformation Capital. “The scalability, efficiency, and flexibility of JUDI™ allows employer groups, as well as health plans, to deliver the highest level of care at the lowest price point.”
In addition to leading in technology, Capital Rx’s Clearinghouse Model™ continues to redefine how prescriptions are priced and administered in the U.S. By removing “spread” pricing and other antiquated practices, Capital Rx unlocks value from the pharmacy supply chain, fosters fair competition, and reduces prescription costs for employers while also improving patient outcomes.
“Since entering the market in 2018, Capital Rx has made tremendous strides by providing pharmacy benefit stakeholders with the price transparency that they deserve,” said Lenard Marcus, General Partner at Edison Partners. “Deploying an ethical pricing framework is critical to industry reform, but equally important, Capital Rx removes traditional conflicts of interest that artificially inflate drug prices and inhibit the quality of patient care.”
Capital Rx has achieved exponential customer growth, with success driven by the management team’s deep domain expertise in software development, clinical management, and supply chain administration. Since its inception, Capital Rx has grown to service hundreds of thousands of members and process millions of prescriptions annually, while maintaining an industry-leading net promoter score (NPS) of 92.
About Capital Rx
Capital Rx is a health technology company that is leading the transformation of the pharmacy benefits industry. Capital Rx’s enterprise pharmacy platform, JUDI™, digitally links providers, patients, pharmacies, and plans to achieve the highest standard of clinical care. By establishing a competitive marketplace through its Clearinghouse Model™, Capital Rx unlocks the pharmacy supply chain to ensure patients receive seamless access to medication at the lowest price.
About Transformation Capital
Transformation Capital is dedicated exclusively to supporting entrepreneurs building transformational digital health and technology-enabled service businesses. The firm invests at the commercial stage in companies that serve stakeholders across the healthcare system and was founded on the premise that healthcare requires a highly focused investment approach combining deep industry expertise and connectivity. Transformation is an investor in companies such as Health Catalyst, LetsGetChecked, PatientPing, PatientPop, Plushcare, Olive and Vera Whole Health.
About Edison Partners
For more than 30 years, Edison Partners has been helping CEOs and their executive teams grow and scale successful companies. Through a unique combination of growth capital and the Edison Edge platform, consisting of operating centers of excellence, the Edison Director Network, and executive education programs, Edison employs a truly integrated approach to accelerating growth and creating value for businesses. A team of experts in financial technology, healthcare IT and enterprise solution sectors, Edison targets high-growth companies with $5 to $25 million in revenue.