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PillPack refills bank account with $31m investment

PillPack co-founders, TJ Parker, the chief executive, (left) and chief technology officer Elliot Cohen
PillPack co-founders, TJ Parker, the chief executive, (left) and chief technology officer Elliot Cohenpat Greenhouse | The Boston Globe/Globe Staff

Home-delivery pharmacy company PillPack Inc., which creates customized packaging to help customers track when their prescriptions must be taken, has raised another $31 million from investors.

PillPack chief executive TJ Parker confirmed the new investment, which was disclosed Tuesday in a filing with the Securities and Exchange Commission. Parker declined further comment.

The new investment is much smaller than the $50 million PillPack raised in June 2015, a round of financing led by venture firm CRV that quickly made the company one of New England’s most prominent startups. The startup has now raised about $93.5 million in total since its founding in 2013.

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PillPack has used that money to grow dramatically, quadrupling its employee count to 400 in the past year. PillPack now supplies prescriptions to customers in every state except Hawaii and recently opened an office in Salt Lake City.

PillPack’s corporate offices are in New Hampshire and Somerville. Parker, who grew up working at his family’s pharmacy in Concord, N.H., was inspired to start the company after seeing the hodgepodge methods customers used to maintain their medication schedules.

PillPack attempts to solve that problem by packaging specific doses into individual plastic pouches labeled with large-type instructions dictating when they should be taken. It’s a type of packaging more commonly seen in health care facilities, where staff members must hand out a wide array of medications to multiple patients.

PillPack has essentially the same business model as a traditional pharmacy, with insurance providers covering the bulk of the medication cost and patients supplying any required co-pays. The company, which is privately held, declined to disclose revenue or customer figures.

This spring, PillPack settled a contract dispute with Express Scripts Holding Co., a large manager of prescription-drug plans that was poised to remove PillPack from its network of approved pharmacies.

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At the time, Parker said that losing access to Express Scripts could have cost PillPack “in the mid-thousands” of customers, representing about a third of its customer base.


Curt Woodward can be reached at curt.woodward@globe.com. Follow him on Twitter @curtwoodward.