Andel, a company focused on transforming the pharmacy benefit model for employers, announced that it has raised $4.5 million in a seed capital round to launch a new platform that enables employers to offer GLP-1 and other high-cost medications to employees at a fraction of traditional insurance costs.
The funding round was announced at the HLTH conference and was backed by investors including Lightbank, Seedcamp, Bertelsmann Healthcare Investments, Houghton Street Ventures, and Springboard Health Angels. The company noted that roughly 64 percent of employers currently do not cover GLP-1 medications for weight loss, as rising healthcare costs make it difficult for benefit plans to absorb additional coverage.
Andel’s offering is designed around a cooperative model in which employers join the platform and leverage the collective buying power of their employees to secure medications directly from manufacturers at below-market prices. Employers can then apply subsidized contributions of their choosing, further reducing costs for employees. The platform handles everything from prescription verification to next-day delivery through a native app interface.
Founders Jay Bregman and Ritu Malhotra, PharmD, bring extensive experience to the company: Bregman has raised more than US $250 million and previously exited three companies, and Malhotra has more than 20 years of leadership experience in pharmaceutical benefits and consulting.
The company plans a nationwide launch in early 2026.
KEY QUOTES:
“Expanding access to healthcare is the cornerstone of our mission. Andel gives employers an innovative new pharmacy-benefit solution that fills the coverage gap.”
Ritu Malhotra, Co-Founder, PharmD, Andel Co-op, Inc.
“We’re living in an era of life-changing medical breakthroughs, yet they remain out of reach for millions of Americans. By building Andel as a cooperative platform, we align incentives with our members — not insurers.”
Jay Bregman, Co-Founder and CEO, Andel Co-op, Inc.
“Connecting businesses and their employees directly to a new pharmacy-benefit is a powerful way to expand access to vital drugs. As the first mover, Andel’s experienced founding team is uniquely positioned to navigate the complexities of healthcare and deliver exceptional value.”
Thorsten Wirkes, Managing Director, Bertelsmann Healthcare Investments
“Andel brings a fresh, cooperative approach to drug access that will open doors for both employers and patients. Their focus on GLP-1s meets urgent market demand for these drugs, while offering measurable ROI for companies seeking affordable, effective employee benefits.”
Eric Ong, Partner, Lightbank
“From Day One, we are incredibly excited to support Andel’s mission of rebuilding the U.S. pharmacy-benefits model starting from first principles. Jay and Ritu combine entrepreneurship with in-depth knowledge of the healthcare and pharmacy-benefits sector, uniquely positioning them to tackle one of the U.S. healthcare system’s most challenging issues.”
Reshma Sohoni, Founder and Managing Partner, Seedcamp
