Edison Partners, a Princeton-based growth equity firm, announced Tuesday it is leading a $12 million growth round into next-generation health technology company Capital Rx.
Capital Rx, which oversees prescription benefit plans, will use the capital to bring its products to market and bolster its technology platform.
“Capital Rx is tackling one of the most pertinent issues in the healthcare system: a lack of pricing transparency. Their focus on providing a transparent clearinghouse and great service has quickly resonated with employers that have grown frustrated with the existing PBM model and are looking for an innovative solution to rising prescription costs. As a rapidly growing health technology company with a large addressable market, Capital Rx is a great fit for our portfolio and we look forward to helping AJ and the management team achieve their vision and maximize their market potential,” said Lenard Marcus, general partner at Edison Partners who led the investment.
Capital Rx, which launched in April 2018, has since realized 3,000% year-over-year revenue growth.
“The future of the pharmacy benefits industry is value-based—and that’s in line with our ethos to bring sustainable and transformative programs that accurately balance access, cost, and outcomes. Edison Partners is providing both the capital source and operating leverage to help us accelerate our go-to-market strategy and disrupt the supply chain with scalability, technology and service differentiation,” AJ Loiacono, founder and CEO of Capital Rx, said.
