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Exclusive: DecisionRx nets $100M credit facility from Carlyle

Illustration of a hand cursor pointing at a bottle of prescription pills.

Illustration: Gabriella Turrisi/Axios

DecisionRx, a value-based care medication management platform, received a $100 million credit facility from Carlyle, DecisionRx CEO James Wallace tells Axios exclusively.

Why it matters: Medication failure can cost health systems up to $42 billion annually while health care spend continues to increase.

Details: This transaction was led by Carlyle's Credit Strategic Solutions, a group within the Global Credit business focused on private fixed income and asset-backed investments.

  • Carlyle receives the option to acquire 25% of the outstanding equity of DecisionRx. Aon Securities advised DecisionRx.
  • The revenue model comes from value-based care models, that uses Medicare shared savings program.
  • The cost of putting the patient through Medication Therapy Optimization and payment for the clinician is paid for up front, by DecisionRx using funds from the credit facility.
  • There is an option to expand or extend the facility with more money, if needed.

How it works: DecisionRx's " concierge-pharmacists" make personalized medication recommendations to prescribers (physicians and pharmacists), based on genetic profiles, existing medication regimes and contraindications.

What they're saying: "We like to lend against pools of assets that have contractual cash flows," says Akhil Bansal, head of credit strategic solutions at Carlyle.

  • "There is a lot of focus right now on lower costs for drugs but this takes a step back into the root causes," he adds.

What's next: The company is targeting prospects that include insurers and ACO's, as well as strategic retail players such as Amazon, CVS and Walgreens, and large self-funded employers, he says.

  • "Health care is a huge blue ocean," he says. "[From]" Medicare all the way down to the smallest employer will benefit from precision medicine."
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