RX Savings Solutions sale would see the startup acquired for up to $875M in KC’s biggest-ever exit
September 19, 2022 | Startland News Staff
The McKesson Corporation has agreed to purchase Overland Park-prescribed Rx Savings Solutions in a deal worth nearly $1 billion.
McKesson announced Monday that it had entered into an agreement with the prescription pricing startup valued at up to $875 million — more than double the $425 million price tag for which Kansas City-built Backlot Cars exited in 2020, making the sale the largest startup exit in the history of the metro.
“By joining McKesson, we will be able to offer an exceptionally broad set of services to our clients and strengthen our leadership in prescription price transparency,” said Michael Rea, founder and CEO.
“This is a critical part of our growth journey, and we are excited about what the future holds for Rx Savings Solutions as part of McKesson.”
The deal guarantees RxSS a $600 million upfront payment and additional funds up to $275 million contingent upon its financial performance through 2025, the companies said in a release.
McKesson said the acquisition is in line with its plans for strategic growth, successfully connecting the biopharma space with payer services.
“Rx Savings Solutions’ offerings for employers and patients will strengthen McKesson’s ability to help solve the most common medication challenges related to access, affordability and adherence,” said Brian Tyler, CEO.
“We expect the acquisition of Rx Savings Solutions to accelerate McKesson’s growth priority in biopharma services by extending our ecosystem of differentiated medication access solutions to patients. Together with Rx Savings Solutions, McKesson will amplify our efforts to advance health outcomes for all.”
RX Savings Solutions will become part of the company’s prescription technology solutions business. The combined organization hopes to deliver new capabilities for employers and patients to McKesson’s portfolio of pharmacy, provider, payer, and biopharma services.
Founded in 2012, RX Savings Solutions contracts with health plans and self-funded employers in an effort to maximize the effectiveness of benefit design to lower prescription cost savings for members.
To date, the company has raised more than $22 million and is ranked number three within Startland News’ most recent Kansas City Venture Capital-Backed Companies report.
2022 Startups to Watch
stats here
Related Posts on Startland News
Meet the competition: 10 entrepreneurs vying for $60K at KC GIFT ‘Pitch Black’ business summit
The return of Kansas City G.I.F.T.’s spring pitch competition not only opens the door to prize money for emerging Black entrepreneurs, said Brandon Calloway, it also allows community members and supporters of his nonprofit to see the impact of its mission firsthand. GIFT’s highly anticipated Pitch Black Business Summit 2025 is set for 10 a.m.…
How a toy car can recapture a moment (and put a little cash in this student’s pocket)
Collecting toys is in Andrew Bates’ blood, the UMKC senior said — and now it’s in his wallet. A supply chain management student at the university, Bates was exposed to the hunt for nostalgia early, he said; his father was snagging Hot Wheels for him before Bates was born. “I was (slow) to embrace it,” the…
Support without limits: Doctor duo flexes scrub design that’s a dream for women, mothers-to-be
A pair of Kansas City doctors diagnosed a chronic need in maternity and versatility care for women — turning to entrepreneurship to prescribe “bump to pump” comfort and flexibility through a new line of scrubs. “Being physicians, we want to continue to help people,” said Dr. Christine Khong, who co-founded Vervee Scrubs alongside Dr. Melanie…
Startup Weekend’s challenge: Build Missouri’s next billion-dollar idea (in three days)
COLUMBIA, Missouri — Budding entrepreneurs are gathering next month for a three-day business pitch event that could earn them $45,000 in prizes plus a $150,000 investment opportunity for the winning company with billion-dollar potential, organizers said. Missouri Startup Weekend returns April 11-13 at EquipmentShare’s newly opened Technology & Development Center in Columbia. It’s a unique…