Capital Rx, a pharmacy benefit manager in the US, has raised USD50 million in Series B financing led by Transformational 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,” says 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 JUDITM, 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 JUDITM platform represents a significant leap forward in pharmacy benefit management,” says Jared Kesselheim, Managing Partner at Transformation Capital. “The scalability, efficiency, and flexibility of JUDITM 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 ModelSM continues to redefine how prescriptions are priced and administered in the US. 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,” says 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.
