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NuRX is a digital pharmacy platform that provides same day delivery of your prescriptions and telehealth services. The company uses its own software and robot technology.
NowRX is currently raising funds through SeedInvest that it plans to use for research and development (R&D), marketing and sales, and expanding its pharmacy business.
Here’s what you need to know…
The goal of NowRX is simple. The company wants to make filling prescriptions accessible, easy and affordable. With its same-day prescription delivery and telehealth services, the company says it offers an end-to-end solution.
The company uses robotic technology to dispense prescriptions, has an easy-to-use app, and operates its own pharmacy management and logistics system known as “QuickFill”.
Between your doctor’s visit and finally getting the prescription, there are many steps to take. Your doctor should provide the script; you must state your insurance, which must then be checked; and then the script goes to the pharmacist. The pharmacist counts your pills (or measures a liquid medicine), packages the medicines and prints the label and disclaimers.
Needless to say, this all takes time. At the pharmacy it takes an average of 20 to 25 minutes, and that is if you are the first in line. It’s no wonder you sometimes find yourself wandering through the pharmacy window while you wait for your prescription to be ready.
NowRX says the QuickFill software makes the process a lot more efficient. The software does this by streamlining the number of processes, including insurance processing and fault management, purchasing and inventory management, discount requests and refill processing.
NowRX says its Parata robot then automates the counting, labeling, bottling and capping of each order…in less than 30 seconds.
The “Amazon of Pharmacy”
Unlike many of the big pharmacy chains like? Walgreens Boots Alliance Inc. (NASDAQ:WBA) or CVS Health Corp. (NYSE:CVS), NowRX has no storefront. Instead, the company leases low-cost spaces near major roads that act as fulfillment and distribution centers. They currently operate eight Drug Enforcement Administration (DEA) accredited pharmacies on the West Coast, including in the Los Angeles and San Francisco Bay areas.
Like most pharmacies, NowRX makes its money through insurance reimbursement, patient copays, or cash payment.
InverstorPlace hypergrowth technology analyst Luke Lango said this about NowRX:
[NowRX has] leverage technology and same-day shipping to disrupt the multi-trillion-dollar retail market – leverages technology and same-day delivery service to disrupt the long-standing several-hundred-billion-dollar pharmacy industry in the US.
In that sense, I like to think of NowRx as the ‘Amazon of Pharmacy’.
CVS is the largest pharmacy in the United States, with 24% of the market share. But with CVS, you don’t get guaranteed same-day delivery. The time varies greatly depending on the area you live in. And not only that… it’s not free.
Through the NowRX platform, you can have your medication delivered for free on the same day or pay $5 for an hourly delivery.
A recent study estimated the global online pharmacy market at $68.2 billion in 2020. It is expected to reach $202.3 billion by 2027, with a compound annual growth rate (CAGR) of 16.8% from 2021 to 2027.
If NowRX can grab even a small fraction of that growth, it could deliver great returns for early investors…
NowRX’s Current Financing Round
NowRX is raising money on SeedInvest with a pre-money valuation of $275 million. The company requires a minimum investment of $998.
(Pre-money valuation is the value of a company before it goes public or receives investments such as financing or financing.)
Although the year-over-year revenue growth was 90% from 2020 to 2021, the company is still not profitable. As mentioned, NowRX is raising money to fund R&D, marketing and sales and to expand its presence in the US. Recently, the company announced expansion in Houston.
On the SeedInvest deal page, NowRX describes the risk of making an investment with the company today, including the fact that the company is competing against “large, well-capitalized industry leaders.” (You can see the full list of risks and disclosures here.)
On February 8, the company announced it had hired its first chief financial officer (CFO), Mark Marlow, who previously oversaw two initial public offerings (IPOs).
Mark brings nearly a decade of venture capital experience as a Managing Partner of Omphalos Venture Partners, a Minneapolis-based early-stage VC fund specializing in investments in medtech, medical SaaS, ransomware as a service and B2B SaaS in healthcare.
This leads us to believe that the most likely “exit” for this privately owned startup could be an IPO.
As with any type of investment, investing in private companies involves risks. You should not invest more money than you can afford to lose. Before trading, I recommend looking into the company yourself to see if it meets your personal investment criteria.
You can find the details of the deal here, including how to invest.
As of this publication date, Jessica Zeller had no (direct or indirect) positions in the securities referred to in this article.
Investing in startups through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies promise, there is always the chance that you will lose some or all of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturn
5) Lack of investor information
Read more: Private Investing Risks
Jessica Zeller has been tracking financial markets for over a decade, bridging the gap between retail investors and complex investment strategies. Her focus has been on technology and high-growth investment strategies.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.