Medication access startup ScriptDrop closed on an oversubscribed $15 million round of Series A funding led by the Ohio Innovation Fund.
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The new funding gives the Columbus-based company a total of $27 million spread out among a few funding rounds since its inception in 2017, Amanda Epp, CEO, told Crunchbase News.
Epp joined ScriptDrop as an early employee and touts the company as “the largest prescription delivery platform in the U.S.” She joined fter doing something similar at CoverMyMeds, a health care tech platform helping doctors and pharmacists complete prior authorization and insurance coverage determination forms for drugs. In 2017, McKesson acquired the company.
One of those ScriptDrop funding rounds was approximately $3 million in seed from angel investors, said Bill Baumel, managing director of the Ohio Innovation Fund, in an interview.
“I heard about ScriptDrop and got to know Amanda and the team,” he said. “They had a team that had done this before at CoverMyMeds and was taking the next step. They were bringing their health care expertise to a new company, including a level of technology and cybersecurity knowledge, along with partnerships with all of the major pharmacy chains, which was an attraction.”
COVID-19 propelled the growth of the company, Epp said. ScriptDrop experienced a 363 percent delivery volume increase between February and April 2020 compared with the same period last year. In addition, there was a 220 percent increase in revenue for 2020.
As a result, the company will funnel its new funds toward engineering and operations, she said.
“The pandemic made us grow faster than we could have ever imagined,” she added. “To keep pace we will add operational support so we can continue to offer that customer touch.”
The pharmacy delivery market, which includes traditional mail, third-party and same-day delivery, is valued at about $300 billion and includes lots of major players, including many of the big-box retailers and pharmacies. Just this week, CNBC reported that UnitedHealth Group closed on its acquisition of divvyDose, a startup that helps patients get their medicine delivered in pre-sorted packages. divvyDose has not received venture capital funding, according to its Crunchbase profile.
Access to medicine is a worldwide problem and, on average, one patient can require 12 prescriptions to be filled per year, Epp said. That’s why ScriptDrop created a way for both pharmacies and patients to request delivery with just a few clicks.
Prior to COVID-19, pharmacies still wanted that foot traffic into their establishments, but Epp said those considering delivery were signing contracts quickly. That was driven by consumers. Last year, there was not much internet search traffic around pharmacy delivery, but now it is one of the most popular searches, she added.
“[ScriptDrop’s] growth has been impressive and, compared with 2019, it will do four times more in business this year and will continue to do so based on the size of the market,” Baumel added.
Illustration: Dom Guzman
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