Prescryptive Health, a prescription medication price transparency app that provides data on prescription drug coverage and costs, closed a $26 million Series A financing round.
Powered by blockchain technology, the app provides consumers information about medication pricing and options – and engages with their doctor at the point of care – when it matters. For patients, the app provides information such as prescribed treatment costs, how much their insurance will cover, their out-of-pocket expense, and what lower-cost alternatives are available.
The company has partnered with 50,000 pharmacies, including specialty and mail-order. If medications are not covered or if patients cannot afford them, they are alerted by app through a text message to address the issue with their doctor and find a more accessible alternative.
According to data provided by the company, people in the U.S. pay 30% more for prescription drugs than those in the rest of the world, and over 450 million prescriptions are abandoned at pharmacies each year due to cost. These distortions are the direct result of a system that limits transparency and choice, contributing an additional $300 billion spent annually on avoidable medical expenses.
The Series A round was led by Morningside Ventures, a technology and life science venture investment firm, joined by existing investors SeaChange Fund and Pallasite Ventures. As part of the investment, Dr. Gerald Chan, co-founder of Morningside Ventures, has joined the company’s board.
The company, founded in 2017 by former Microsoft commercial cloud veterans Chris Blackley and Kevin Young, employs about 50 people with an office in Redmond, Washington.
“Our mission is to empower consumers to take control of their health. We are proud to have found a partner in Morningside who shares our passion for improving healthcare,” stated Chris Blackley, CEO of Prescryptive Health. “Dr. Chan’s dedication to entrepreneurship and innovation in healthcare will be a powerful influence for Prescryptive as we deliver on our mission.”
Digital Health companies raised $2.8 billion in Q2 2020, according to Mrercom’s latest digital health global funding report. Recently, Sidecar Health, a California-based insurance startup focused on price transparency and direct payments for care, raised $20 million in a new funding round
Image Credit: Prescryptive Health