- Leading digital pharmacy company Alto Pharmacy recently announced it raised $250 million in Series D funding. Here is how the funding will be used.
Leading digital pharmacy company Alto Pharmacy recently announced it raised $250 million in Series D funding led by SoftBank Vision Fund 2 with participation from existing investors GreenOaks Capital, Jackson Square Ventures, Olive Tree Capital, and Zola Global. This funding round values Alto Pharmacy at more than $1 billion.
Alto Pharmacy is considered a full-service pharmacy designed to improve health outcomes and lower costs by providing customers with faster and more convenient access to their medication. Rather than having to visit a traditional brick-and-mortar pharmacy to pick up medications, Alto customers schedule delivery of medication right to their home or office that same day from their phone. Plus Alto customers can also see medication price comparisons, manage their medications, and connect directly with a pharmacist to help them stay on track.
This round of funding is aiming to support Alto’s geographic expansion across the United States and product development. And with the funding round, Alto Pharmacy raised more than $350 million.
The World Health Organization cited a study that said medication adherence can have a more direct impact on patient outcomes than the specific treatment itself. And it has been found that 50% of all treatment failures and up to 25% of yearly hospitalization rates are caused by patients not receiving or taking their medications as prescribed. As a result, it costs the industry nearly $300 billion a year when prescriptions are not filled or taken as prescribed.
Alto’s customers not only receive their medication in a timely fashion, but they also have increased medication adherence rates at over 80% versus the industry average of 50%.
“Since we founded Alto in 2015, we have served over 100,000 patients and delivered over 1,000,000 prescriptions. We are proud of the impact that we’ve had on the lives of our customers and are excited by this important next step in our journey,” said Matt Gamache-Asselin, CEO at Alto. “As we harness our technology and bring this experience to millions of new customers, we are confident that we’ll continue finding even faster and friendlier ways to get medicine into the hands of patients in need.”
In the San Francisco Bay Area alone, there are more than 40 UCSF and Stanford clinics now refer patients to Alto, and the service has been rapidly growing.
“US pharmacies comprise a $350B market, but providers and consumers face meaningful pain points. Traditional pharmacies still rely on outdated technologies like phone, fax, and paper, that aren’t built for our increasingly digital world,” explained Justin Wilson, Partner at SoftBank Investment Advisers. “Alto has rebuilt the pharmacy infrastructure to align all stakeholders to improve health outcomes. We’re excited to partner with Alto and support its mission to improve the quality of life for everyone who needs medicine.”
Currently, Alto operates in San Francisco, Los Angeles, Las Vegas, San Diego, Seattle, and Sacramento. And it is estimated that a single Alto pharmacy or fulfillment center covers the same geographic area as about 400 chain pharmacy locations while offering same-day delivery. And the company plans to accelerate geographic expansion and launch in additional markets this year.