Pharmacy Technology Startup Capital Rx Raises $50M, Plans to Double Team

by Ellen Glover
February 2, 2021
NYC-based Cyber Rx raises $50M, plans to double team
Photo: Shutterstock

Capital Rx, an NYC-based pharmacy benefit manager, announced Tuesday it closed on a $50 million Series B round led by Transformational Capital.

The last time Built In caught up with Capital Rx was in 2019, when the company raised its $12 million Series A. At the time, it was working to make drug prices more affordable and transparent, and partnering with various businesses, unions, government agencies and pharmacies to do so.

Since then, Capital Rx claims to have achieved “exponential customer growth,” servicing hundreds of thousands of members and processing millions of prescriptions annually.

In the last several months the company has also launched JUDI, a cloud-based healthcare management platform and patient mobile app that provides employers with full visibility into their health spending, utilization trends and patient outcomes to ensure employees are getting quality healthcare at an affordable price. Capital Rx manages to do this through what it refers to as its “clearing house model,” which removes antiquated healthcare practices that slow down the pharmacy supply chain, fostering competition so prescription costs stay low.

“The JUDI platform represents a significant leap forward in pharmacy benefit management,” Jared Kesselheim, managing partner at Transformation Capital, said in a statement. “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.”

Now, Matthew Gibbs, the president of commercial markets at Capital Rx, says the company plans to use this fresh funding to further develop JUDI and expand its market customer base to include Medicare and Medicaid users. He also says Capital Rx plans to grow its team by 100 percent in 2021, with more than a dozen open tech positions available now.

“There is no limit to what you can do when you have strong technology backed by competent and motivated individuals who want to truly change the way drugs are priced in the United States,” Gibbs told Built In via email. “We have a noble cause at Capital Rx, in an industry that desperately needs reform and more efficient solutions to improve patient care and outcomes, we are here to meet that challenge.”

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Jobs at Capital Rx

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