Boston, MA, April 2, 2015 – ZappRx (zapprx.com), today announced that it has raised a $5.6M Series A round led by SR One, the venture arm of GlaxoSmithKline, with participation from Atlas Ventures. ZappRx is building the leading mobile platform to automate specialty drug prescription management for patients, physicians, and pharmacists. The company also announced a partnership with biopharmaceutical company Zafgen (NASDAQ: ZFGN), to help automate the prescription management process for patients affected by Prader-Willi syndrome (PWS) and hypothalamic injury-associated obesity (HIAO). Additionally, Jeremy Levin, former CEO of Teva Pharmaceutical, has also joined the board of ZappRx.
ZappRx transforms the way specialty medications are managed, from order initiation to administration. Patients, physicians and pharmacists are each engaged via a secure and collaborative online platform that enables them to input, update, submit and confirm specialty prescription information — improving patients’ access to treatment and delivering medicine faster, with fewer hassles and greater transparency.
“Due to the complex and custom challenges associated with ordering specialty medications, no automated system currently exists for patients with rare and life-threatening diseases that require specialty medications,” said Zoe Barry, Founder and CEO of ZappRx. “We’re committed to building the technology solution that will help these patients gain access to their life-saving medication as efficiently as possible.”
Both SR One and Atlas Ventures contributed to ZappRx’s seed funding in 2013, and ZappRx was SR One’s first investment in digital health.
“As the venture capital arm of GSK- a major manufacturer of specialty medications – we are on the lookout for IT solutions which address major pain points for pharma.We are acutely aware of the many issues patients face each time they try to get their prescriptions for specialty medications,” said Jens Eckstein, Managing Partner at SR One. “We strongly believe in ZappRx’s ability to alleviate these inefficiencies, and this new funding represents our renewed commitment to Zoe’s vision for the company and to innovative IT solutions for our industry.”
In 2014, specialty pharmaceuticals represented nearly 25 percent of all drug spending. CVS Caremark and Express Scripts, two of the largest pharmacy benefit managers, report that specialty pharmaceuticals are the fastest-growing segment of drug spending, and by 2019 they expect specialty drugs to represent 50 percent of their plan sponsors' overall drug spending. The total cost for a patient requiring specialty medications can be thousands of dollars a month and can exceed $100,000 a year for some products.
Any delay in getting the medicine to the patient is bad for their health, and reduces value to them as well as doctors and pharmacists. ZappRX’s platform goes a long way to solving delays and errors.
To date, ZappRx has raised a total of $8.8M. In the coming months, the company will announce additional partnerships with specialty pharmacies and pharmaceutical companies as it goes to market with select customers.
ZappRx is modernizing and simplifying the way specialty medications are managed. The company provides a secure collaborative online platform that allows patients, physicians and pharmacists to work together to improve patients’ access to treatment, delivering medicine faster, with fewer hassles and greater transparency. ZappRx is on the web at ZappRx.com. Follow ZappRx on Twitter at twitter.com/zapprx.