RxSense, a high-growth healthcare technology company that utilizes its proprietary technology platform to provide innovative prescription savings solutions to consumers and pharmacy benefits administration and analytics to enterprise customers, announced a significant investment by Parthenon Capital, a growth-oriented private equity firm that has managed funds with more than $5 billion in total capital commitments. Proceeds from the transaction will be used for various growth initiatives. Terms of the investment were not disclosed.
Chairman and CEO Rick Bates founded RxSense in 2015 with a mission to develop technology solutions that improve healthcare transparency and access to more affordable medications. Bates brought a seasoned group of healthcare veterans familiar with the challenges of the PBM industry and paired them with an innovative technology team to develop a sophisticated architecture that addresses the pain points of antiquated pharmacy benefits administration. At the core of RxSense is an industry leading pharmacy benefits technology platform that provides flexible solutions, enabling efficient management and greater transparency and access to prescription savings.
RxSense’s direct-to-consumer division leverages this proprietary technology platform, along with direct contracts with the nation’s largest pharmacies and extensive consumer engagement tools, to consistently deliver low prices on prescription drugs. The company’s SingleCare® and FamilyWize® prescription savings solutions deliver significant savings of up to 80% on nearly all FDA-approved prescription drugs, covering approximately 95% of pharmacies where U.S. consumers fill prescriptions. Information about these solutions is shared with consumers by hundreds of thousands of doctor offices nationwide. The company’s enterprise division features RxAgile, a cutting-edge cloud-based platform for managing pharmacy benefits that is smart and simple to use, and offers speed and flexibility to meet the needs of any PBM, health plan, health system or employer.
“We’re thrilled to partner with the Parthenon Capital team, which brings tremendous experience and strategic value to RxSense,” said Bates. “Parthenon’s experience building and supporting franchise companies in healthcare technology, as well as the addition of our new board members, will create a significant advantage for us as we continue to grow our business and develop solutions that meaningfully improve healthcare transparency and the affordability of prescriptions.”
“RxSense is an exceptional company bringing a unique combination of pharmacy industry expertise, leading technology and deep consumer experience to help address one of the most prominent issues in healthcare – providing access to affordable prescription medications,” said Dave Ament, co-CEO of Parthenon. “We are excited to partner with Rick and the entire RxSense management team to support their growth initiatives.”
RxSense also announced that Jeffery Boyd and John Hayes have joined the company’s board of directors. Boyd is Chairman of the Board of Booking Holdings, Inc. and previously served as CEO of Booking Holdings and its predecessor Priceline Group. He was also Executive Vice President of Oxford Health Plans before joining Priceline. Boyd brings to RxSense unique expertise at the intersection of healthcare, technology and consumer brands. A proven private equity investor, Hayes is the co-founder of Great Hill Partners and led many successful investments in internet infrastructure, business services, SaaS companies and media sectors.
“At over $420 billion annually, medication spending represents one of the largest and fastest-growing areas of healthcare expenditures,” added Kurt Brumme, a principal at Parthenon. “RxSense has developed a technology platform that delivers significant savings to millions of Americans while creating a unique alignment with the nation’s leading pharmacies. We look forward to working with RxSense to build upon that track record of success in the coming years.”
RxSense® is a healthcare technology company developing industry-leading solutions that improve transparency and access to more affordable medications for millions across America. SingleCare® is a free prescription savings service available through its mobile app or discount cards available on Singlecare.com that can save consumers up to 80% on their prescriptions. FamilyWize® is a prescription savings service that partners with some of the most respected community groups and healthcare providers in the country, including United Way Worldwide and the American Heart Association. RxSense’s transformative RxAgile® enterprise solution brings transparency, flexibility and efficiency to pharmacy benefit administration, serving pharmacy benefit managers, regional health plans, health systems, third party administrators, new healthcare technology companies, and new healthcare and pharmacy entrants. RxSense’s vertically integrated business, including its own proprietary technology for claims management and adjudication and direct contracts with the nation’s largest pharmacies (including CVS, Walmart and Walgreens), allows it to deliver consistently low prices on prescription drugs to improve the access and adherence to medication for people across America. RxSense is headquartered in Boston with offices in New York City, greater Philadelphia and West Palm Beach, Fla. For more information, visit rxsense.com.
About Parthenon Capital:
Parthenon Capital is a leading growth-oriented private equity firm with offices in Boston, San Francisco and Austin. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service and technology industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in financial and insurance services, healthcare and technology services, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. For more information, visit www.parthenoncapital.com.