Photo: andresr/Getty Images
Health benefits technology company Capital Rx announced it secured a $400 million investment, which includes $252 million in Series F funding.
The company also received additional investments in its securities, which is expected to close in early October.
The oversubscribed round was led by General Catalyst and Wellington Management
Growth Equity at Goldman Sachs Alternatives, Edison Partners, Generation Investment Management, 9Yards Capital, B Capital, Transformation Capital, Prime Health Investments and others participated in the round.
Capital Rx also announced it is rebranding as Judi Health "to better reflect its roots and broadened capabilities" as an employer-focused health benefits technology company; however, Capital Rx will still run as a pharmacy benefits manager (PBM) brand under Judi.
WHAT IT DOES
In addition to Capital Rx, the company also offers Judi Care, a healthcare navigation platform for pharmacy, medical, vision and dental benefts that connects members to in-network care with built-in cost transparency.
The platform offers appointment booking, provider search, cost estimates and prescription savings.
Its offering, Judi, short for adjudication, is the company's Enterprise Health Platform, which offers administrative workflows for its plan members.
Judi Health will use the funds to expand its PBM operations and scale Judi Health's enterprise platform.
"By combining a transparent PBM model with a scalable, AI-powered platform, they're building the infrastructure for the next generation of health benefit administration. Employers are demanding better solutions, and Judi Health is uniquely positioned to meet that moment," Joshua Sommerfeld, healthcare sector lead at Wellington Management, said in a statement.
MARKET SNAPSHOT
Earlier this year, Capital Rx acquired healthcare navigation platform Amino Health.
Following the acquisition, Amino Health became Capital Rx's care navigation offering, Judi Care, thereby expanding the company's enterprise platform capacity to almost 60 million covered lives across its portfolio.
Last year, Capital Rx formed a strategic partnership with fellow pharmacy benefits manager Prime Therapeutics. Through the collaboration, Prime became the only other PBM to use Capital's Judi platform.
In 2023, the company announced it had closed a strategic investment round totaling more than $50 million.
Major health systems participated in the round, including Atlantic Health System, Banner Health, Hawai'i Pacific Health, Inova Health System, Lehigh Valley Health Network, Memorial Hermann Health System, Nebraska Medicine, Novant Health, Ochsner Health and WellSpan Health, among others. Transformation Capital also participated in the round.
The same year, the company partnered with virtual cardiometabolic clinic Vida Health to launch Rx Activate, which provides Capital Rx's clients with access to resources and tools to help manage cardiometabolic conditions through virtual care.
In 2022, Capital Rx secured $106 million in a Series C funding round led by B Capital.
