Will Rx Startup Targeting Cash-Paying Patients Succeed?

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.

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Peter Johnson

Peter Johnson

Peter has worked as a journalist since 2011 and has covered health care since 2020. At AIS Health, Peter covers trends in finance, business and policy that affect the health insurance and pharma sectors. For Health Plan Weekly, he covers all aspects of the U.S. health insurance sector, including employer-sponsored insurance, Medicaid managed care, Medicare Advantage and the Affordable Care Act individual marketplaces. In Radar on Drug Benefits, Peter covers the operations of (and conflicts between) pharmacy benefit managers and pharmaceutical manufacturers, with a particular focus on pricing dynamics and market access. Before joining AIS Health, Peter covered transportation, public safety and local government for various outlets in Seattle, his hometown and current place of residence. He graduated with a B.A. from Colby College.

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