SAN FRANCISCO — SmithRx, a technology-enabled pharmacy benefits management company, has closed a $20 million series B financing round.
SmithRX reported 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.”