Exclusive: Rx Redefined gets $8M to cut mediators from medical supply
Tech-enabled medical supply provider Rx Redefined raised $8 million in Series A funds, CEO Brandon Boots tells Axios exclusively.
Why it matters: The antiquated medical supply sector is riddled with fax machines and paper forms, resulting in delays for important equipment that patients with chronic illnesses rely on to manage their conditions.
Deal details: Crosscut Ventures Management led the round, bringing total funding to roughly $14 million.
- Tusk Venture Partners, Silverton Partners, Pisgah Fund and former General Electric CEO Jeff Immelt participated.
- The company will likely raise its Series B before 2025. "We have a line of sight on break-even with our last round," says Boots.
By the numbers: Oakland, California-based Rx Redefined has booked annual recurring revenues of $14 million and employs 51 people.
How it works: Rx Redefined lets doctors and medical groups directly order supplies on behalf of patients by helping them become licensed medical suppliers.
- It charges doctors a per-order fee that includes costs for its software and assistance with billing.
- "We’re connecting the patient and doctor and removing the need for all this other stuff," says Boots.
The backstory: Boots and Rx Redefined chief commercial officer Jayme Hanson previously worked at medical giants such as Medtronic and Heraeus Medevio, where they saw medical supply delays happen firsthand.
- Often, medical suppliers were unable to determine what DME suppliers were in-network for their patients, and relied on faxing to send prescriptions, creating bottlenecks, they say.
State of play: Rx Redefined is one of a handful of companies in the tech-enabled durable medical equipment (DME) space that have raised funds recently.
- Tomorrow Health contracts with payers to match patients with suppliers and last June collected $60 million in Series B funding.
- Better Health bundles peer support, education and medical supplies and in 2021 raised $10 million in Series A capital.
What's next: Currently focused on urology, Rx Redefined hopes to expand into other chronic disease verticals such as diabetes.