Pharmacy benefit manager Capital Rx has secured $400 million in fresh funding and announced a rebrand to better reflect its expansion beyond the pharmacy space.
The investments include a $252 million series F round and other funding toward its securities, which is expected to close in October. Wellington Management and General Catalyst led the round, and additional supporters include Generation Investment Management, Growth Equity at Goldman Sachs Alternatives, 9Yards Capital, B Capital, Edison Partners, Prime Health Investments and Transformation Capital.
With the infusion of cash, Capital Rx said it plans to lean more into its broader capabilities as a health benefits technology provider and will rebrand as Judi Health, the name of its proprietary tech stack. The company said the shift "marks a pivotal moment in addressing the fundamental inefficiencies of health benefits administration and the rising cost of care in the U.S."
The funding will also support the expansion of its PBM operations, Capital Rx said.
"We've seen unprecedented demand for Capital Rx, our transparent pharmacy benefit offering, and with the introduction of Judi Health, we are able to help our customers also administrate medical, dental, and vision benefits on a single platform," said A.J. Loiacono, CEO of Capital Rx, in the announcement. "The U.S. healthcare ecosystem has far too many 'rent seekers' inflating costs, hiding fees, and delivering substandard care due to a combination of misalignment and a reliance on antiquated technology."
"Judi Health is not just the promise of better care; it is the technology that powers the future of U.S. healthcare," Loiacono said.
Under the rebrand, Capital Rx will continue to operate as a transparent PBM, according to the announcement. Within the broader Judi Health umbrella, that brand will also represent its health benefit management platform for employers, payers and third-party administrators.
In addition, the company will continue to offer its Judi platform, a scalable SaaS tool that manages claim workflows.
Capital Rx was founded in 2017 and since then has grown to represent 4 million employer PBM members and more than 54 million health plan lives enrolled in its platform.
"With Judi, Capital Rx has built a platform that not only meets the needs of today's employers and health plans, but is engineered to adapt and grow with them," said Holly Maloney, managing director at General Catalyst, in the release. "We believe their leadership in transparent PBM and their vision to unify pharmacy and medical benefits represent a transformative shift in healthcare administration, and we look forward to deepening our relationship."