PillPack Secures $31.1 Million in New Funding to Expand Its Digital Pharmacy and Medication Reminder Platform
Virtual Pharmacy in Manchester, New HampshirePillPackRecently announced that the company has once again received3110$10 million investment. No details of this round have been disclosed yet, but according to Fortune magazine, the investors include Boston-based new venture capital firm Star Capital, Charles River Ventures, and Sherpa Capital. Among them, Sherpa Capital is2015Reinvestment after one year of investment.
PillPack is a virtual pharmacy company based in Manchester, New Hampshire, founded in 2014. Unlike other online-to-offline (O2O) pharmaceutical services, PillPack addresses the pain points associated with medication adherence. Users can order a 14-day supply of medications using only an electronic prescription; the medications are pre-sorted and labeled with the corresponding dates for administration. The company has also launched a namesake mobile app that includes medication reminder features. Currently, the company is experiencing strong growth and has secured a total of $93.1 million in investment.
The pharmaceutical O2O landscape is diverse, yet only a minority of services truly address core issues. PillPack provides online pharmaceutical services via mail. By submitting an electronic prescription or fax to the platform, the company delivers a 14-day supply of medication to customers, pre-sorted and labeled with administration dates.
Through online tools, customers can view their shipment volumes and add over-the-counter medications or vitamins. They can also check medication costs and insurance reimbursement details. If customers have any questions about their medications, they can call a pharmacist at any time.
In February 2014, PillPack secured $4 million in its first round of funding, established its headquarters in Manchester, and expanded its operations to cover 31 states. In September of the same year, PillPack raised an additional $8.75 million, further expanding its reach to 40 states.
Comparison of Traditional Pharmacy and PillPack Processes
“Imagine a patient who needs to take seven to eight prescription medications each month, requiring three to four visits to the pharmacy every month, with a different regimen each day,” said CEO TJ Packer. “They then bring home all those bottles and jars, haphazardly stuffing them into a medicine cabinet, only to search for each one individually when it’s time to take their medication. For individuals on multiple medications, this process is incredibly chaotic and complex. What we do is simplify this complexity.”
After securing $50 million in financing in 2015, PillPack began to expand into the mobile application market. It launched apps for iOS and Apple Watch, marking its first-ever app release. The PillPack app is accessible to everyone, even non-customers, and introduces several new medication reminder features.
Packer believes that simplicity and consistency are the best solutions. Many applications attempt to offer all-encompassing, one-size-fits-all solutions but fail to genuinely improve people’s daily lives. This app aims to simplify and reset medication management data, remind users to take their medications on time, and make appropriate adjustments based on users’ lifestyle habits.
Moreover, even non-PillPack customers can use this app. Users need only provide their name, date of birth, and Social Security number to generate a personalized medication list. For existing users, the app can automatically populate data. It leverages GPS and other settings—such as “remind me to take my medication during work hours”—to build a historical record. The application also tracks medications taken and missed, allowing users to review their historical data.
Prior to each shipment, PillPack sends users a text message to inquire whether they need to update their medications. Meanwhile, the platform also offers various insurance services, including health insurance.
PillPack Development Timeline
The platform also waives shipping and service fees for users. Since 2014, it has processed over 1 million orders, covering as many as 47 states.
PillPack has numerous investors, including Atlas Venture, Queen’s Bridge Ventures, Highline Beta, and Founder Group, among others. This round of funding will be used to enhance the user experience. The company expanded its workforce from 100 to 400 employees and established a new office in Salt Lake City.