PillPack Raises $50 Million Series C To Ramp Up Its Full Service Online Pharmacy


Cambridge, MA-based digital pharmacy startup PillPack has raised a $50 million Series C led by fellow Boston local Charles River Ventures, and with additional participation from Accel Partners, Menlo Ventures, Atlas Venture, and Sherpa Ventures. The new funding follows PillPack’s $9 million Series B by just under a year, and brings the company’s total raised to $63 million. PillPack is also a 2013 TechStars graduate.

Launched in 2013, PillPack started as a tech-savvy online pharmacy competing in a market alongside more than 40,000 other online retail vendors selling prescription medication to Americans over the Internet. At the time of its launch, researchers estimated that upwards of 97 percent of online pharmacy retailers were illegitimate, internationally-based operations shipping counterfeit medications into the country with no regulatory oversight. To differentiate itself in this market, PillPack worked hand-in-hand with payers, providers, and the National Association of Boards of Pharmacy to substantiate itself as a legitimate player in the emerging digital health marketplace. Now, with the necessary certifications in hand, PillPack competes against other reputable online retail pharmacy chains, including Drugstore.com and Walgreen’s online pharmacy service.


From a service perspective, PillPack brings value to the medication delivery chain by focusing its efforts on eliminating confusion for the patient. Rather than mailing medications in standard pill bottles, PillPack sends a roll of single-serve pouches that contain the patient’s medications and that are labeled with the date and time the pills inside should be taken. Medication adherence is supported through the company’s app, which first pulls in an active medication list through existing data exchange networks in an encouraging example of what health IT interoperability may one day bring to the larger healthcare community. The company’s privacy policy explains, “Once you sign up, we retrieve additional information from your former pharmacy including medication name, strength, directions for use, quantity, original refills, refills remaining, prescriber, first fill date, last fill date. This allows us to know when you will run out of your current medications and allows us to work with you to find an ideal start date for your PillPack.” Users are also able to configure medication reminders based on time or location, and can snooze reminders in increments of five minutes.

Since its launch, PillPack has seen strong growth and now delivers medications in 47 states. It reports that it will use its new funding round to expand its customer base through both increased efforts online and the introduction of physical retail locations.

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