Bringing clarity to the $300 billion prescription drug payment system in the U.S., Truveris has raised $12.75 million in a new round of funding led by Canaan Partners.
The New York-based company launched its first product in 2009, a system to check bills received by health insurance companies for prescription fulfillment.
Truveris has an index of the cost of each prescription drug sold and the company’s software checks that price against the price charged by the pharmacy. “Average wholesale prices could be loaded incorrectly, or maximum allowable costs could be loaded incorrectly,” says Bryan Birch, the chairman, chief executive and president of Truveris. “The payer can save money and the member of the health plan can save money.”
More recently, the company launched another product, called TrueBid, to create a marketplace for buyers and sellers of pharmaceutical payment plans.
“Think eBay for prescription benefits,” says Birch of the company’s newest offering. Pharmacy benefits managers like the system because it creates more efficient work flows for bidding on contracts with insurers, and don’t mind the increased transparency it purports to provide.
Up next for the prescription payments technology developer is a reporting service for benefits managers. “We not only provide the reporting solution like Tableau would, and the data warehousing, we also customize the reports for [managers] up front.”
Canaan Partners led the Series C investment in Truveris, while previous investors New Leaf Venture Partners, Tribeca Venture Partners, New Atlantic Ventures, and First Round Capital all participated in the financing. As a result of the investment, Canaan Partners’ Stephen Bloch will be taking a seat on the board.
The company raised the round to support the roll-out of new products, which should be launching in the fourth quarter. Truveris already counts 200 customers on its service, representing 30 million members. The company’s software processes 300 million claims on an annual basis representing 10 percent of the country’s drug spend, according to Birch.
Photo via Flickr user Erich Ferdinand.