Online Pharmacy Platform DiRx Nets $10M for US Expansion
DiRx, a digital health company offering savings on generic Food and Drug Administration-approved medication through an online pharmacy, has raised $10 million in Series A funding.
According to a Tuesday (Dec. 28) press release, the funding will go toward the company’s expansion and national market reach of its pharmacy model.
DiRx helps reduce supply chain layers, which could assist the 40 million uninsured and 80 million underinsured Americans who have an issue getting out-of-pocket medicine costs.
The DiRx model gives lower priced options for over 1,000 generic drugs, without a need for health insurance or any discounts or coupons. The medicine can be priced as low as $3 per month and the company offers a 12-month price guarantee.
The company also offers institutional business-to-business (B2B) partnerships, giving pharmacy benefits to larger groups like self-insured employers, third-party administrators, benefit managers and brokers.
“We’re so glad that our team’s successful launch of a high quality and meaningful digital platform supported by a premium customer experience has powered continued investor confidence in our strategic direction and execution capabilities,” said Satish Srinivasan, founder and CEO of DiRx. “We’re encouraged by our investors’ clear understanding of the economic pain points in the current system and our ability to enhance medicine access and affordability for everyday Americans.”
PYMNTS writes that the health care system’s shifts over the past year are now seeing a new scrutiny toward prices, with laws in both the U.S. and Europe hinting at the possibility of price regulations.
See also: M&A Scrutiny, Price Regulation Possible Headwinds for Pharma, Biotech in 2022
The report says the U.S. and Europe are looking at ways to allow innovation while also protecting the affordability of medications.
The U.S. might look to restrict how much companies are allowed to increase prices every year, with Medicare allowed to directly negotiate with drug makers on prices.
The balance between the various elements will see whether the regulation will impact innovation too much, with too many restrictions likely to see research and development (R&D) budgets cut and startups losing investors. At the same time, the report notes that high prices will sometimes have to be regulated.