Communication can often feel like a weak link between patients, doctors and pharmacists. And that’s where Austin-based Digital Pharmacist has been focusing its efforts.
Investors like what they see. The company, which was created when Austin’s RxWiki, TeleManager and PocketRx merged earlier this year, announced Tuesday it has closed a $6.5 million Series B. The investment was led by New York City’s Activate Venture Partners and Austin’s LiveOak Venture Partners.
“The company has grown over five-fold since our initial investment a little over 18 months ago,” Krishna Srinivasan, general partner at LiveOak Venture Partners, said in a news release. “This is a testament to both the size of the opportunity and to how well the team has executed over the past year. We are excited about building a dominant company that leverages the pharmacy ecosystem to positively impact patient lives.”
Digital Pharmacist offers a variety of digital tools for healthcare professionals. That includes building HIPAA compliant websites, apps and marketing materials. It also creates interactive voice response systems and other communication tools. The company says its solutions are used by 6,000-plus pharmacies and brands.
While operating as RxWiki, the company raised a $5.6 million Series A in 2015, which was led by New York-based Milestone Partners and Austin’s LiveOak Venture Partners. It also raised about $2 million from angel investors prior to that. The new round brings in Activate Venture Partners, which previously invested in Austin’s MapMyFitness before it was acquired by Under Armour in 2015.
RxWiki was founded in 2012 by Donald Hackett, who served as CEO until 2016 when the company appointed Chris Loughlin, former CEO of Travelzoo, as its new CEO. TeleManager, meanwhile, was founded by Val Gurovich and Paul Kobylevsky. And Robert Terrell founded PocketRx. Digital Pharmacists founders are Loughlin and CFO Judd Rabb.
Loughlin said the new money will help build new products and help Digital Pharmacist further improve patient outcomes.
“Seventy-five percent of patients want to manage their health provider relationships via their mobile device. Our solutions help pharmacies meet these patient demands,” he said in a news release. “With this new round of funding, we are inspired to work even harder on behalf of the thousands of pharmacies and millions of patients that use our products.”