SAN DIEGO, March 5, 2002 (PRIMEZONE) -- MedVantx, Inc.(sm), developer of the first Internet-enabled point-of-care system for managing the clinical, supply chain management and financial aspects of dispensing first course prescription medications in physician offices, today announced the completion of a $12.1 million third round of equity funding. The company's product, writeSTART(tm), addresses the needs of patients and physicians for improved quality of care and reduced treatment costs. MedVantx has established several beta sites in California and plans to use the proceeds from this financing for commercial expansion in mid-2002. The company is aiming to capture a share of the $73 billion first-prescription drug market.
Investcare Partners Limited Partnerships, a venture capital fund of GMA Capital led the financing. Also participating were Rock Maple Ventures and Tenet Ventures, the venture capital arm of Tenet Healthcare Corporation, as well as existing investors Polaris Ventures, Advent International and ARCH Venture Partners.
"This financing included investors from several of the most prominent healthcare services and technology-focused venture capital firms," said Robert J. Feeney, Jr., president and chief executive officer of MedVantx. "We are especially pleased to add strategic investors with backing from leading healthcare providers to our already strong investor group."
MedVantx's product, writeSTART, enables physician groups to easily and safely dispense the first course of a patient's prescription medications from their offices, to the benefit of patients, physicians, managed care, payors and pharmaceutical manufacturers. Independent payor data from the company's beta sites demonstrated that MedVantx's writeSTART system can substantially increase formulary compliance and generic utilization, and lead to a significant decline in average prescription cost.
The writeSTART system includes proprietary software, hardware and services that combine automated drug purchasing and inventory management, clinical pharmacy information, insurance benefit management, real-time insurance claims processing, credit card processing, and ongoing clinical and financial reporting. Importantly, writeSTART allows physicians to check dosing, adverse reactions, drug interactions, and formulary compliance prior to filling a prescription. Customers may add features that include e-prescribing, interfaces to practice management systems and electronic medical records, and automatic routing of refill prescriptions. Prescription refills are routed to retail, mail order or specialty pharmacies. Physicians are able to offer a high-value ancillary service to their patients while generating a new revenue source for their practices.
"The healthcare system is looking for ways to improve patient drug therapy while reducing costs, and we believe MedVantx has developed the right solution," said Charles P. Rothstein, managing director of Investcare Partners. "MedVantx's writeSTART product is the first high-quality system that addresses the workflow, drug safety, insurance compliance, billing and supply chain aspects of point-of-care prescription dispensing for physician groups. We share MedVantx's excitement about taking this proven point-of-care dispensing model from the hospital arena to a new market."
About MedVantx, Inc.
MedVantx is pioneering a new category of patient care called Medication Start Management, which enables physicians to effectively deliver first-course drug therapy from their offices. Under this care model, patients receive immediate drug therapy, improving their compliance and therapeutic outcome, while lowering overall treatment costs. MedVantx's writeSTART enables physicians to successfully implement Medication Start Management. writeSTART allows for real-time interaction between physicians and patients to reduce time-consuming prescription rework, ensure drug formulary compliance and decrease medication errors.
Based in San Diego, CA, MedVantx is a privately-held company with total funding to date of more than $25 million. The company's founders include former senior members of Pyxis Corporation, the leading provider of medication and supply automation to healthcare. For additional information please visit the Company's website at www.medvantx.com
About GMA Capital
GMA Capital offers a full range of investment banking services in conjunction with acquisitions, divestitures, joint ventures and corporate financings from its offices in Detroit, Michigan, London, England, and Los Angeles, California. InvestCare Partners provides healthcare entrepreneurs with equity, resources and industry expertise to succeed. The Fund's focus is on e-health, information technology, medical device and product manufacturers, and out-sourced services. InvestCare's limited partners include major healthcare providers such as Oakwood Healthcare Systems and St. John's Health Systems. www.GMAcapital.com