Health IT

Pharmacy disruptor PillPack has raised another $30.1M following expansion

Only last year PillPack raised $50 million from investors such as Charles River Ventures, Menlo Ventures and Sherpa Ventures alongside Accel Partners and Atlas Venture

PillPack Shipment

PillPack, a digital health startup intent on disrupting the pharmacy experience, has raised more than $30.1 million in a bid to expand its national customer base. In an email, Co-founder and CEO TJ Parker confirmed the amount listed in the Form D filing on the U.S. Securities and Exchange Commission’s website, but declined to add details.

PillPack was founded in Boston in 2013 following the MIT Hacking Medicine event where the idea for the business came about. The company helps people manage multiple medications by pre-sorting and packaging prescriptions, vitamins, and over the counter drugs into individual packs and automatically delivering them to customers. The pharmacy team coordinates orders.

The reality is that most older adults have at least one chronic condition and many have more, requiring them to take multiple medications. This population segment may also grapple with memory problems, making this streamlined approach to the pharmacy experience tailor-made to support seniors and their caregivers.

Only last year PillPack raised $50 million from investors such as Charles River Ventures, Menlo Ventures and Sherpa Ventures alongside Accel Partners and Atlas Venture.  Since then, PillPack has opened a new office in Salt Lake City, Utah and added 100 staff across areas such as customer service, engineering, and operations, for a total of 400 employees, according to a source close to the company. To date, the company has raised more than $90 million in venture capital.

There are a few digital health companies that compete or at least complement what PillPack is doing. Zipdrug and Capsule Pharmacy come to mind.

Like PillPack, Capsule set up an online pharmacy and a bricks and mortar drugstore, in this case in New York City. The goal is to provide the customer service not generally associated with big pharmacies by providing the kind of door-to-door, premium service associated with a bygone era or that tend to cost a lot extra. A bicycle courier delivers prescription medicine to New York City locations. The company handles communication with insurers and physicians for refills and informs users before they order a prescription what it costs.

Zipdrug also embraces the online pharmacy, door-to-door delivery concept and has focused on the Big Apple, although the company’s co-founder and CEO Stu Libby has shared aspirations to expand beyond these shores. The priority for Zipdrug is to reduce the number of unfilled prescription drug orders. When a physician orders a prescription, patients can access Zipdrug’s app either directly through its website or through a pharmacy’s website, enter their insurance and payment information and provide a delivery address. Healthcare providers can also order the delivery service directly. Libby has said the company’s technology can also be white labeled on pharmacies’ websites. Even those stores that don’t have an account with ZipDrug can order the delivery service for their customers.

Photo: PillPack

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