SAN FRANCISCO — SmithRx, a San Francisco based Pharmacy Benefit Manager (PBM), has secured $9 million in Series A funding. Founders Fund led the investment round with participation from Blumberg Capital, NextGen Venture Partners, Box Group, and others. The financing will support SmithRx as it scales and delivers a broad technology solution to change the way pharmacy benefits are managed.
“We see a huge opportunity to move the PBM space forward,” says Jake Frenz, SmithRx founder and CEO. Americans spent $460B at the pharmacy in 2016 according to QuintilesIMS, which is almost double the spend from 10 years ago. Consolidation in the industry, aimed at lowering cost through scale, has not mitigated this problem. “From limited choice, to antiquated technology, to dissatisfaction amongst clients and members, this is one of the largest, yet least recognized problems in healthcare.” SmithRx offers a new path.
SmithRx was founded in 2016 to create a technology-driven and cost-competitive PBM that offers clients a flexible customer-centric product. “Our focus is on building the next generation pharmacy benefits partner that enables choice, aligns incentives, and surfaces insights to improve care delivery,” says Frenz. “Innovation has lagged in the PBM sector, and our team is dedicated to accelerating change.”
“A smith is a craftsman — someone who is precise about his or her trade,” said Frenz. “That’s where our company name comes from.”