H.I.G. Ventures leads a $7.8 million investment in RxStrategies, Inc., a pharmaceutical services company serving community health centers
April 18, 2003 – RxStrategies, Inc., a pharmaceutical services company that serves Community Health Centers (CHCs), announced today that it has raised $7.8 million from the sale of Series A Preferred Stock in its first round of venture capital financing. The financing was led by H.I.G. Ventures and also included Lovett Miller & Co. and Select Capital Ventures.
RxStrategies, which was founded by Eric R. Hanson in January 2001, offers a proprietary, comprehensive turnkey solution, called Access RxSSM, that allows Community Health Centers to gain access to significantly discounted prices on prescription drugs under Section 340B of the Public Health Service Act. Collectively, these CHCs serve 12 million patients, many of which are lower income or uninsured, and write an estimated 215 million prescriptions annually. RxStrategies is pleased to join with the National Association of Community Health Centers (NACHC) in providing the Access RxSSM program, which allows these CHCs and their patients to realize substantial savings on prescription drugs.
Eric R. Hanson, Chairman of the Board and Chief Executive Officer, said, “This financing will allow us to greatly expand the number of community health centers we can serve with the Access RxSSM program. Since we officially launched the program at NACHC’s 33rd Annual Convention in September 2002, the response to the program has been truly overwhelming. Now we have the capital necessary to service that need.”
“RxStrategies has developed a unique solution that addresses the enormous need for affordable prescription drugs for patients of community health centers, and will fundamentally improve the level of care their patients receive,” comments Brian Schwartz, Managing Director at H.I.G. Ventures. “The company has a significant backlog of community health centers that want to implement the Access RxSSM program and our investment will provide them with the capital they need to rapidly roll out their program nationwide,” adds W. Radford Lovett II, Managing Director at Lovett Miller & Co.
Tom Van Coverden, President and Chief Executive Officer of NACHC, said “We are pleased to join RxStrategies in this endeavor. We have been working with the company for over two years and together we have developed a unique program that is providing substantial savings for our members and their patients.”
H.I.G. Ventures is one of the largest and most successful venture capital firms in the Southeast United States. H.I.G. is dedicated to helping talented entrepreneurs build market-leading businesses. H.I.G. Venture’s investment activity is focused on early and growth stage technology and healthcare companies. Its most recent venture capital fund has total capital of over $250 million. In addition, its affiliate, H.I.G. Capital, manages more than $1 billion of equity capital dedicated to investments in private equity and management buyouts.