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
LISTEN: Startup bites into early cancer detection for dogs
On this episode of Startland News’ new Plug and Play Topeka founder podcast series, we meet Preston Williams — founder of ProPetDx — whose company is giving veterinarians a powerful new way to detect disease in pets before symptoms appear. From the spark of an idea to building high-definition diagnostics, our guest shares how science, data,…
Advocates push Latino entrepreneurs to urgent action in the face of ‘innovation churn,’ civil rights challenges
Latino entrepreneurs are a powerful force in America’s economy, leaders emphasized Thursday from the UnidosUS stage, but systemic barriers continue to keep many from achieving financial freedom, they lamented. “Our superpower is an entrepreneurial spirit,” said Ruby Azurdia-Lee, president and CEO of Comunidades Latinas Unidas en Servicio (CLUES), speaking during the UnidosUS Annual Conference’s closing…
River Market’s iconic ‘Trolley Tom’ reopening with grab-and-go deli menu, specialty cocktails
A new grab-and-go eatery is rolling into River Market, filling a hole left when Donutology shuttered operations inside “Trolley Tom” — the circa 1947 Kansas City streetcar permanently parked at 426 Delaware in the popular retail and entertainment district. Car No. 551 is scheduled to open by mid-September with deli offerings and and drinks by…
KC on top: Hat maker’s best-seller spotted on ‘GMA,’ ‘Ted Lasso’ as brand shapes its national profile
Sandlot Goods wears the spotlight well, said Thomas McIntyre, noting each high-profile media close up of its signature dad hat is another step toward establishing Kansas City’s only hat manufacturer as a national brand. After being featured on the “Made In America Christmas” segment of ABC World News Tonight with David Muir, Sandlot was again…