Next generation pharmacy benefit partner startup SmithRx raises $9 million  to change the way pharmacy benefits are managed.

San Francisco-based technology company and Pharmacy Benefit Manager (PBM) startup, SmithRx, has raised $9 million  in Series A funding, the company announced. The investment round was led by Founders Fund with participation from Blumberg Capital, NextGen Venture Partners, Box Group, and others. The financing will support SmithRx as it scales and delivers a broad technology solution to change the way pharmacy benefits are managed.

SmithRx is the next-generation pharmacy benefit partner built on a modern technology platform that creates new levels of flexibility, efficiency, and customer satisfaction. It’s a new path forward that aligns incentives and harnesses data analytics to deliver an exceptional pharmacy benefit product. SmithRx was founded in 2015 to create a cost-competitive PBM that offers clients a proven pass-through model, a single technology platform, concierge level service, and strong drug cost, rebate, and service level guarantees. The 100% in-house team brings together experience from healthcare companies including Anthem and Safeway Pharmacy along with Silicon Valley technology leaders. Front-line clinicians guide plan execution and member support.

Named after a smith, a craftsman, or someone who is precise about their trade. SmithRx embodies these characteristics and brings precision to the pharmacy benefit industry by leveraging technology and data to forge the product of the future.

“We see a huge opportunity to move the PBM space forward,” says Jake Frenz, SmithRx founder and CEO. Americans spent $460B at the pharmacy in 2016 according to QuintilesIMS, which is almost double the spend from 10 years ago. Consolidation in the industry, aimed at lowering cost through scale, has not mitigated this problem. “From limited choice, to antiquated technology, to dissatisfaction amongst clients and members, this is one of the largest, yet least recognized problems in healthcare.” SmithRx offers a new path.

“A smith is a craftsman — someone who is precise about his or her trade,” said Frenz. “That’s where our company name comes from.” SmithRx embodies these characteristics and brings precision to the pharmacy benefit industry by leveraging technology and data to forge the product of the future. To date, the company has raised a total of  $9 million in funding.