Mega insurer UnitedHealth Group is now looking into the digital pharmacy space with reports that it has acquired DivvyDose. The acquisition, which was first reported by CNBC’s Christina Farr based on an anonymous source, is estimated to be worth approximately $300 million.
The company’s model is similar to Amazon’s PillPack. The startup is able to ship users their medications in pre-sorted packs with the time and dates they should take them listed on the package. Patients can signeup for the service digitally and then have their prescriptions transferred. Currently the company’s website states that it accepts all major insurance plans, and that copays stay around the same as a typical 30-day fill price.
The company was founded in 2015 by Dr. Arvind Movva, who is still currently listed as the CEO of the company.
MobiHealthNews has reached out to DivvyDose for comment on the news, and will update this story with any response.
WHY IT MATTERS
This deal would give the UnitedHealth Group access to a virtual pharmacy, potentially for its member base. The insurer has been interested in the digital space for some time and has already purchased digital companies in the past – its venture group Optum was reportedly in talks with virtual behavioral health company AbleTo finalizing a $470 million purchase, for instance. Additionally, it inked a deal with PatientsLikeMe, an online digital patient community.
THE LARGER TREND
This marks another major deal in the digital pharmacy space. In 2018 Amazon acquired digital pharmacy PillPack for over $700 million. In 2019 the company struck a deal with Blue Cross Blue Shield of Massachusetts that integrates the former’s digital pharmacy platform into the payer’s MyBlue member app.
There are plenty of digital pharmacies currently on the market. In January Alto, a digital pharmacy and drug delivery company, announced a $250 million Series D funding round led by SoftBank’s Vision 2 fund, which brought its total funding to $350 million. Another company, Capsule, landed $200 million in new funding in September of 2019 – only a year after its $50 million Series B round.
This summer also saw the launch of new online pharmacy called Genius Rx. This platform includes a new artificial intelligence engabled patient engagement tool that aims to make the experience more personalized.
