Foster City, Calif.-based Oration, which provides prescription buying services for companies and their employees, emerged from stealth and revealed that last year it raised $11.2 million in Series A funding. DFJ Venture led the round with participation from GV (formerly known as Google Ventures), Andreessen Horowitz, Chicago Ventures, Data Collective, Work-Bench, Arsenal Venture Partners, TiE Angels and individual investors.
Oration Announces OrationRx to Make Prescription Management Easier and More Affordable
New Solution Gives Employees the Power to Order and Refill Prescriptions, Drastically Improve the Pharmacy Experience, and Save Money for Themselves and Their Companies
Foster City, California, Dec. 16, 2015 – Oration, the pioneer making it fast and easy to purchase prescription drugs at the lowest price, introduces OrationRx, the first software solution that enables employees to manage their prescriptions, purchase the cheapest drugs, and improve the pharmacy experience from beginning to end—all from their mobile devices. The platform forms an intelligence layer that identifies prescription prices and availability in a given area and enables patients to choose and order them on the spot, saving themselves and their employers both time and potentially thousands of dollars each year.
Roughly $370 billion is spent annually for prescription drugs in the U.S. alone. According to Express Scripts, $93.1 billion of prescription drug spend could have been saved if patients had price-shopped between pharmacies. Until now, however, consumers did not have access to pricing information when making a decision on filling their prescription. Oration’s software enables employees to quickly view the best drug-purchasing options based on cost and personal convenience, just like they do with every other purchasing decision, and choose where to purchase medications directly from their mobile devices.
For many employers, the combined costs of prescription coverage can quickly add up to millions of dollars — a hefty bill that can negatively affect the total benefits that the organization can offer. OrationRx makes employees’ lives easier and frees employers to offer better benefits. Early adopters include a number of large employers such as Workday (NYSE: WDAY), Young’s Market, and Peterson CAT, a large dealer of Caterpillar construction equipment.
“Oration’s software and support have given us the opportunity to offer a voluntary employee benefit that reduces hassle, improves peace of mind, and creates real savings for our employees,” said Mark MacGuidwin, CFO of Peterson CAT. “We’ve seen a significant reduction in total spend and a 2X ROI within the first quarter. The feedback we’ve gotten from our employees has been overwhelmingly positive. It’s helpful, easy to use, and creates real value for them. We’ve been delighted with the results from beginning to end.
The Prescription Drug Market: Ripe for Transformation
Most people are familiar with the inconveniences that come with a trip to the pharmacy, but few realize the radical disparity between prices of the same drug from different pharmacies. The industry has remained largely opaque, but the same medication, for the same patient holding insurance information constant, can cost either $4 or $60 at two different locations within a five-mile radius. Those types of discrepancies can add up quickly, ultimately costing businesses and patients thousands of dollars a year. OrationRx eliminates those unnecessary costs and streamlines the entire pharmacy process for employees who buy new or refill prescriptions, so medications become more affordable and the whole process becomes a lot less painful. OrationRx finally makes the prescription management process as simple as getting a movie recommendation on Netflix or buying products from Amazon.
OrationRx Helps Businesses Reduce Healthcare Costs and Augment Employee Benefits
OrationRx is available to all self-insured businesses and commercial accountable care organizations (ACOs). The software works with all major pharmacy benefit managers (PBMs) and pharmacies without requiring contract changes or being tied to open-enrollment. Designed to act as a benefit in-and-of itself, OrationRx helps businesses operate better and employees live better through a number of key benefits:
· Corporate savings: The majority of adults in America need medications. The more employees a company has, the more prescription overpayment expenses become an issue. Oration has the potential to save self-insured employers with 10,000 or more employees more than $1 million dollars a year, simply by helping employees choose the lowest-priced provider for their medications. OrationRx is supported on the back end by powerful data analytics algorithms that determine individual user optimizations based on insurance plan, cost and location.
· Patient savings: With the advent of the ACA, and the increasing popularity of high-deductible plans, employees are just as affected, if not more so, by high healthcare costs as their employers. OrationRx offers an opportunity for prescriptions to be managed for the whole family from one single platform, and for the first time enables the family healthcare purchaser to save on all of their prescription needs.
· Ease of use: OrationRx is available on any connected device and works with the touch of a button. The software instantly analyzes thousands of prescription pricing options based on an employee’s insurance plan, drug safety, efficacy requirements, cost and location preferences, and it distills recommendations to simple, one-click choices. Filling a prescription through OrationRx is as simple as buying a new movie online.
· Convenience: Besides simply securing the lowest-priced medications, OrationRx is also a platform for managing prescriptions. That includes ordering refills, re-directing delivery, and much more. Empowering users to skip the pharmacy line is just one way that OrationRx offers employees new benefits to redeem and reward themselves and their families.
· Easy, secure deployment: OrationRx is a SaaS platform that can be deployed immediately with minimal HR resources. The solution is HIPAA compliant and completely secure.
· Adherence: Everyone knows it’s important to take their medication, but high costs can deter people from filling even the most essential prescriptions. OrationRx lowers that barrier so that people are more likely to take the drugs they’re prescribed. Patient compliance in taking prescribed and necessary medications can have a direct impact on doctors’ ability to contribute to their work environment.
Addressing the Healthcare Cost Problem in America
CEO Pramod John, formerly vice president of strategy and innovation at McKesson, founded Oration on the belief that people deserve a smarter, more equitable way to shop for pharmaceuticals and other healthcare products. As a public benefit corporation, Oration is dedicated to creating healthcare solutions that promote common good. The designation comes with the expectation that American companies and workers will encounter improved conditions as a direct result of its operations. Oration does that by using technology to lift the curtain on the imbalance in drug pricing, empowering everyone to access more affordable healthcare.
“A few miles can mean the difference of dozens of dollars spent on the very same prescription, on the very same insurance plan, for the very same consumer,” said Oration CEO, Pramod John. “And that delta is significantly higher for specialty drugs. There’s something very, very wrong with that picture, and Oration is committed to helping correct that. Our mission is very simple: we want to make healthcare accessible to American workers by making the pharmacy experience more convenient to consumers and empowering them to buy the drugs they need at the lowest cost possible. Those two changes make for better adherence and a healthier workforce.”
In 2014, Oration secured $11.2 million in Series A funding in a round led by DFJ Venture, with participation from GV (Google Ventures), Andreessen Horowitz, Chicago Ventures, Data Collective, Work-Bench, Arsenal Venture Partners, TiE Angels and various other individuals.
With headquarters in Foster City, California, Oration is a public benefit corporation (PBC) working to positively impact societal health by making quality healthcare more accessible to American workers. Its first product, OrationRx, is a prescription management application that brings one-click simplicity to shopping for and buying prescriptions. OrationRx helps employers and their employees choose where to get the lowest cost medications and manage their prescriptions in real-time. Designed for self-insured employers with 10,000 or more employees, the OrationRx platform allows employees to obtain the lowest drug prices, resulting in annual savings of potentially $1 million or more. To date, the company has analyzed more than $2 billion worth of drug transactions. Founded in 2012 Oration has received funding from DFJ Venture, Google Ventures, Andreessen Horowitz, Data Collective, Work-Bench, Arsenal Venture Partners, Chicago Ventures, TiE Angels and various other individuals. Current Oration customers include Workday, Young’s Market, Peterson CAT and others. As a public service, Oration will analyze claims data for any self-insured employer for free. Go to www.oration.com for more information.