A new startup, DiRx, has entered the prescription-drug-delivery fray, and will target un- and underinsured consumers with low-cost, generic maintenance medications. Experts say that the market is worth pursuing, but they observe that more established and better capitalized players such as Amazon.com Inc. and GoodRx have a head start on reaching those consumers.
DiRx launched in late 2020 with a $5 million seed round, and the firm’s CEO, Satish Srinivasan, tells AIS Health that they will close a Series A funding round in coming weeks. Srinivasan says the firm buys drugs directly from manufacturers and wholesalers, then sells directly to consumers. He adds that DiRx does not contract with PBMs and does not accept insurance.
“It’s about rewiring the model,” Srinivasan tells AIS Health, a division of MMIT. “Most pharmacies operate on a reimbursement basis. And when you step into reimbursement, you know, there’s a whole lot of things that come in that inflate the cost: There are PBMs and all of that. Most of us have come to think that there’s health insurance that will take care of everything.”
Srinivasan also argues many patients don’t have adequate pharmacy benefits.
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