Mobile App For Ordering Prescriptions
CaryRx has created what it calls a “Full-service pharmacy in the palm of your hand.”
Its proprietary mobile platform enables users to order prescriptions and have them delivered the same day. The company launched in 2017 serving customers in the Mid-Atlantic, and is preparing to expand its platform nationwide.
This is a fast-growing sector. In June 2018, Amazon acquired PillPack, an online pharmacy that enables users to buy medication in pre-made doses, for $1 billion.
Following the deal, Adam Fein, CEO of Pembroke Consulting's Drug Channels Institute, noted that "The pharmacy industry has entered its next phase of evolution."
According to an article in TechCrunch, Amazon's acquisition proved that the digital health market is becoming "heated" and that other pharmacy companies may have to respond with deals of their own.
As for CaryRx, the company is the only on-demand pharmacy startup led by a former pharmacist, and has been touted as a “game changer.” One customer even called it “The best thing to hit pharmacies since medicine itself.”
While working as a pharmacist, Founder Areo Nazari experienced first-hand the problems patients dealt with — including long lines, poor communication, and a lack of personalized care.
He concluded that a prescription delivery business could solve these issues. This was the inspiration behind CaryRx.
The core of the business is a mobile app that enables patients to order prescriptions with what the company calls an “Uber like” experience. Here’s how the process works:
When a prescription is sent by a doctor to CaryRx, the patient receives a notification. Through the app, users upload their insurance information, add a payment method, and place their order. They can also chat with CaryRx’s pharmacy team, request refills, and track deliveries.
CaryRx has a partnership with McKesson (NYSE: MCK), a pharmaceutical company that generated nearly $200 billion in revenue in 2017. Through this partnership, CaryRx receives the necessary medication to fill the prescriptions quickly and conveniently.
CaryRx also has an exclusive partnership with Postmates, an on-demand delivery company valued at $1.2 billion. Through this partnership, CaryRx can deliver prescriptions to customers the same day — sometimes in less than an hour.
Because of its partnerships with McKesson and Postmates, free same-day delivery, and a team led by a founder with domain experience, CaryRx believes it will separate itself from competitors in this space such as Capsule, Alto, and NowRx.
CaryRx launched in August 2017, targeting patients in Washington D.C., Maryland, and Virginia. Within the first seven months, the company achieved an annual run rate of nearly $500,000, and has since filled more than 5,000 prescriptions.
CaryRx’s customer acquisition cost is $10, and its lifetime value per customer is $330. The company also has a 99% retention rate. For each prescription filled, the company earns an average gross profit of $30, more than twice the industry standard. In addition, CaryRx achieves gross margins of 33%, 10% higher than the industry average.
Moving forward, CaryRx has been approached by several large hospital systems with an interest in creating a white-label solution of its platform. This would present an additional revenue stream, part of the company’s goal to reach $5 million in revenues by the end of 2019.
Within the next five years, CaryRx aims to offer two-day shipping to patients across the country. Pharmacies must be licensed in each state in which they operate, and the company believes receiving an out-of-state license takes approximately 1 to 2 months.
In addition, CaryRx will launch a subscription model enabling it to work directly with home-health agencies to offer clinical pharmacy services in addition to automated monthly prescription delivery.
Areo is a former pharmacist who spent more than 8 years in the industry.
Before starting CaryRx, he was the Executive Team Leader for a Pharmacy in a Target retail store.
In addition, he served as Pharmacist in Charge at a Rite Aid pharmacy.
Areo earned a Bachelor’s degree in Biology from the University of Maryland and a Doctor of Pharmacy degree from the University of Maryland Baltimore.
Prior to CaryRx, Kevin founded Avido Mobile Accessories, a company developing consumer electronic products.
In addition, he co-founded Pinser, a mobile app enabling college students to discover nearby events on their campus.
For two years, Kevin served as Business Development Manager for NeurExpand Brain Center, a medical company focused on neurological services. While there, he worked directly with the company’s CEO and developed the business’ marketing strategy.
He earned a Bachelor’s degree in Business Administration from the University of Maryland.
Kaveh works part-time as CaryRx’s technology advisor.
In addition to his duties with the company, he works as a section chief at the Internal Revenue Service. There, he’s responsible for managing and delivering IT-related products, and leading a team of 25 engineers and contractors.
He previously worked as Director of FrontRad Technologies, a company developing software solutions for healthcare businesses.
For six years, he served as an associate with Booz Allen Hamilton, a management consulting firm. In addition, he was a software engineer with Raytheon, where he worked on the NASA Earth Observing System.
Kaveh earned a Bachelor’s degree in Computer Science from the University of Maryland and a Master’s in Computer Science from Johns Hopkins University.