SmithRx doubles managed members for the fifth consecutive year as it accelerates disruption of pharmacy benefits management
SAN FRANCISCO–(BUSINESS WIRE)–SmithRx, a next-generation pharmacy benefits management company, today announced the closing of a $20 million series B financing round, following a year of record growth in which the company surpassed 1,100 employer clients. Venrock led the oversubscribed round and was joined by existing investors, including Founders Fund. The proceeds will support Smith’s plans for continued growth as it becomes the leader in next-generation pharmacy benefits management (PBM).
“Venrock’s deep experience in scaling health tech companies will be invaluable to Smith’s future growth and we are thrilled to partner with their team,” said Jake Frenz, Founder and CEO of SmithRx. “Smith continues to expand its foothold in the PBM sector as we put the power back in the hands of employers – our customers – who are the ones paying the pharmacy bills on behalf of their employees and members.”
The PBM industry has suffered from increasing inefficiency over the past decades, as incumbents have taken oversized margins while driving up drug costs for health plans, employers, and patients. SmithRx is leading the next-generation of pharmacy benefits with a tech-forward approach that provides full control and transparency to its clients. The company’s innovative, fully integrated cost savings programs proactively drive down drug costs.
The rapid adoption of the SmithRx solution is a testament to the pent-up demand for modern, customer-centric PBM services. Smith has built this solution by focusing on rebuilding PBM technology infrastructure from the ground up.
“The lack of visibility into pricing, combined with ever-increasing drug costs, demands a fresh and novel approach,” said Bryan Roberts, a partner at Venrock. “What the team at SmithRx has built over the last six years is delivering on its promise to save customers money, enabled by technology and empowered by transparency. We look forward to partnering with the SmithRx team on their company building journey.”
With this round, Roberts has joined the Board of Directors and Venrock partner Bob Kocher, MD is a Board Observer.
SmithRx reduces total drug costs and improves health outcomes with 100% pass-through pricing and the world’s most advanced PBM technology. With hundreds of broker and TPA partners, SmithRx has simplified pharmacy benefits with its leading-edge technology and easily-integrated cloud infrastructure, resulting in lower pharmacy costs for employers. Members benefit from SmithRx’s clinical programs and alternative sourcing, SmithRx Connect, to easily manage their prescription benefits and reduce overall drug spend. With offices in California and Utah, SmithRx was founded with the mission of offering a simple, completely transparent cloud-based alternative to traditional PBMs. For additional information on SmithRx, visit www.smithrx.com or send an email to [email protected].
Originally established as the venture capital arm of the Rockefeller family in 1969, Venrock partners with entrepreneurs to build some of the world’s most disruptive, successful companies. With a primary focus on technology and healthcare, portfolio companies have included 10X Genomics, Apple Computer, AveXis, Check Point Software, CloudFlare, Dollar Shave Club, Gilead Sciences, Idec Pharma, Illumina, Intel, Millennium Pharma and Nest. For more information, please visit Venrock’s website at www.venrock.com and follow the firm on Twitter at @venrock.