Capital Rx, a transparent pharmacy benefit manager, has secured a $400 million investment and is rebranding under the name Judi Health as it expands beyond pharmacy benefits, the company announced on Tuesday.
The $400 million investment includes $252 million in Series F funding led by Wellington Management and General Catalyst, with participation from Generation Investment Management, Growth Equity at Goldman Sachs Alternatives, 9Yards Capital, B Capital, Edison Partners, Prime Health Investments and Transformation Capital. It also includes additional investments in the company’s securities, meaning investors are buying stocks from existing stakeholders.
In total, the company has raised $607 million in funding. Its valuation is at $3.25 billion.
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The financing is being used to support the deployment of Judi Health’s Enterprise Health Platform, which includes:
- Capital Rx: a transparent PBM for self-insured employers
- Judi Health: a health benefit management solution for employers, TPAs and health plans. It provides care navigation support for pharmacy, medical, vision and dental benefits
- Judi: a software-as-a-service solution to help health plans manage their claim workflows
CEO AJ Loiacono told MedCity News that the company is also investing in research and development. In addition, it will search for investment opportunities in “companies that have complementary technology, but nothing in our core architecture or services,” he said.
When asked about Judi Health’s exit strategy, Loiacono said the company isn’t currently disclosing exit plans.
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Judi Health is “scaling at the right time,” according to Wellington Capital.
“As PBM reform gains momentum, employers are demanding transparency and control — and Capital Rx’s independent, tech-driven platform is built to deliver both. Their expansion into broader benefit administration addresses market needs and helps unlock the power of AI in ways legacy systems simply can’t,” said Joshua Sommerfeld, healthcare sector lead at Wellington Management, in a statement.
The company’s announcement comes as employers expect the cost of healthcare in the U.S. to increase by about 9% in 2026, according to the Business Group on Health. Pharmacy expenses are a major driver of this increase, and many are turning to transparent PBMs like Capital Rx and Navitus to combat this issue.
Judi Health already serves more than 4 million employer PBM members and 54 million health plan lives. It aims to continue this momentum, according to Loiacono.
“Our rebrand to Judi Health reflects the company’s broader mission of giving our country the infrastructure it needs for the healthcare we deserve,” he said. “For employers, health plans, and ultimately patients, this means building a platform that not only meets their needs today but one that adapts and grows with them into the future.”
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