PharmaSecure announced this week a $3.9 million investment round led by ex-Google CEO Eric Schmidt’s Innovation Endeavors. Other investors included Gray Ghost Ventures, Healthtech Capital and the TEEC Angel Fund. Healthtech Capital lead a $200,000 investment round for PharmaSecure in September.
In a post for MobiHealthNews in May, Healthtech founder Don Ross singled out Eric Schmidt when writing about health tech as the next big VC opportunity, writing that “at the recent J.P. Morgan Annual Healthcare Conference in San Francisco… panelists included Eric Schmidt, Google’s then-CEO, and other technologists not typically associated with health care.”
PharmaSecure uses SMS to verify a prescription drug’s authenticity, using a unique code and phone number printed on a pill bottle’s label. One of the startup’s competitors is Sproxil, which partnered with GlaxoSmithKline in May.
The funds will be used to create new applications in response to a mandate from India’s government that all exported drugs have unique barcodes and serial numbers by July 2012. According to the company, 65 million pharmaceutical packages have been printed in India since the company started operations there in 2009, with 1.5 billion packages expected to be exported over the next year.
Innovation Endeavors’ Dror Berman stated in a press release that “we’ve invested in PharmaSecure because they are executing a game-changing approach to combating counterfeit drugs that holds huge potential for improving the safety and security of pharmaceutical products throughout the world.”
“India is leading the way in the global fight against counterfeit drugs. We are proud to have had a hand in creating applications like SMS authentication that put the power of protection against dangerous medicine literally in people’s hands,” stated PharmaSecure co-founder and CEO Nathan Sigworth in a press release. “We are investing in more applications that can ride on the mandated serialization to increase the reach and distribution of our clients’ products and better health for their consumers. With the tradition of innovation that comes with this investment we expect the regulatory requirements to provide a creative opportunity for us and our clients.”
Read the press release below. Keep reading>>