Overland Park’s Rx Savings Solutions has just raised $18.4 million in new funding, which it will invest in sales, marketing and increased functionality for its product.
Rx Savings Solutions has created a platform that lets users find the lowest-cost alternative for their prescriptions. Self-funded employers and health plans subscribe to the service and, in turn, make it available to their workers and members.
“Everyone in the nation has the same problem – high drug costs – and most people don’t know there are options to save money,” said Michael Rea, pharmacist, founder and CEO of Rx Savings Solutions. “We are using the power of technology to streamline how Americans purchase prescription drugs in the same ways the Internet has transformed how consumers book travel, buy cars or shop for electronics. Like a shopping app, we do the price checking for you and proactively alert you of the savings directly.”
By January, about 2 million people will be using Rx Savings Solutions, up from 100,000 in 2015. Clients include American Century Investments, Quest Diagnostics and Berkshire Hathaway Media Group, among others.
This round of funding was led by McCarthy Capital, an Omaha-based firm.
“Rx Savings Solutions is the national leader in a rapidly evolving space,” said Brian Zaversnik, vice president of McCarthy Capital. “The sophistication of the software and the corresponding savings for clients are clear differentiators. They are bringing pharmacy and technology together in a way that will transform the industry and bring significant efficiency to the market.”
Zaversnik will be active in the business, as will Dan Henry, a local investor who was part of Rx Savings Solutions’ $2.7 million round in the summer of 2015.
“This new strategic capital gives us the resources needed to continue to build an organization that combines premier pharmacy expertise with leading technology expertise,” Rea said. “The result is a powerful, proactive software approach that is one of a kind.”