PharmMD, a Brentwood, Tenn.-based provider of medication therapy management, has raised $8.8 million in private equity funding from The Riverside Company and FCA Ventures. Harpeth Capital advised PharmMD on the deal.
PharmMD recently raised $8.8 million in capital from The Riverside Company and FCA Ventures IV, a fund of Clayton Associates.
A market leader in medication therapy management (MTM), PharmMD works with self-insured employers and health plans to improve patients’ quality of life and to reduce overall healthcare costs by connecting the patient, physician and pharmacist together. MTM helps improve patient outcomes by guarding against medication error, misuse and overuse by identifying costly medication duplication and preventing harmful drug interactions.
“We are excited to accomplish another successful round of fundraising with a high-caliber partner like Riverside,” said Bo Bartholomew, co-founder and CEO of PharmMD. “Right now there is a unique opportunity for growth in medication management. This new funding equips PharmMD to continue to expand the company. PharmMD will help more employers reduce their costs and allow health plans to achieve compliance with Centers for Medicare & Medicaid Service’s new 2010 MTM Standards. As we continue to personalize healthcare, we are doing our part to ensure that more patients receive the medication they need, in the dosage they need, when they need it.
“As a leader in the MTM industry, PharmMD is poised to play an important role in pending healthcare reform. MTM services lower costs and improve healthcare, which is why the service is widely praised by industry experts and organizations,” said Jeff Goodman, Operating Partner at The Riverside Company.
The PharmMD board of directors will remain in place with the addition of two new members from Riverside’s team: Brian Sauer, Vice President for Riverside, and Goodman, who will also serve as the new chairman.
R. Clayton McWhorter, founder and chairman of Clayton Associates, will continue to serve on the PharmMD board and be an active advisor to the company. Other members of the PharmMD board include Craig Fuller, President and CEO of the Aircraft Owners and Pilots Association; Jim Lackey, chairman of the board for Passport Health Communications, Inc.; and Mike Kane, President of Kestrel Asset Fund.
Harpeth Capital advised PharmMD during this investment round. PharmMD is headquartered in Brentwood, Tenn. The company’s web site can be accessed at www.PharmMD.com.
PharmMD is the nation’s leading MTM provider. Based in Brentwood, Tenn., PharmMD prevents medication related problems through the application of the best pharmacist and physician knowledge. Founded in 2006 and led by CEO and President Samuel ‘Bo’ Bartholomew III, PharmMD improves coordination and communication among physicians, pharmacists, payers and patients by analyzing pharmacy and medical claims information and clinical decision making. Because PharmMD focuses exclusively on MTM, the company is able to analyze both aggregate and patient-specific data to identify trends and conflicts to positively impact patient health and contain costs. For more information, visit www.PharmMD.com.
The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring leading small and medium-sized enterprises (with a value of up to $150 million) and partnering with strong management teams to enhance the success of its companies through acquisitions and organic growth. Since its founding in 1988, the firm has invested in 221 transactions with a total enterprise value of $5.0 billion. The investment portfolio in North America, Europe and Asia includes 71 companies with annual sales totaling $3.3 billion, EBITDA of $506 million and more than 13,000 employees (June 2009). Riverside offers the resources to complete acquisitions smoothly – thanks to its more than $3.0 billion in assets under management, more than 180 professionals in 18 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Eindhoven, Hong Kong, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw) and its longstanding relationships with partner lenders. According to Thomson Venture Economics, seven of Riverside’s nine mature funds rank in the top 25% of all funds (as at 31 December 2008). The firm’s investors include the world’s leading pension funds, endowments, funds of funds, insurance companies and banks. For more information visit www.riversidecompany.com or www.riversideeurope.com.
About FCA Venture Partners IV
Clayton Associates is a private equity firm based in Franklin, Tennessee that invests in early stage growth companies and selected real estate ventures. FCA Venture Partners IV is their fourth fund. Clayton Associates has more than ten years of private equity experience, with over $100 million in committed capital in four funds. Clayton Associates invests primarily in healthcare related services and technology, but also considers other industries including technology, communications, diversified services, health sciences, and biotechnology.
About Harpeth Capital
Harpeth Capital is a middle market focused investment bank that specializes in raising capital and providing merger and acquisition advisory services to both public and private companies. Harpeth Capital is a wholly owned subsidiary of Harpeth Companies, Inc., a diversified financial services firm. In addition to investment banking, Harpeth Companies has activities under Harpeth Consulting, Harpeth Ventures and Harpeth Real Estate. You can learn more about Harpeth Capital and Harpeth Companies at www.harpethcapital.com.