NEW YORK–(BUSINESS WIRE)–May 30, 2003–Spencer Trask, a New York based venture capital firm, today announced that TechRx, the leading systems and technology provider to the prescription drugindustry, was acquired by NDCHealth (NYSE: NDC).
NDCHealth operates the largest health data network in the U.S.
With TechRx valued at $230 million, Spencer Trask venture investors will receive $5.55 for each TechRx share, versus a $1.00 per share original investment. Spencer Trask investors made one venture investment in TechRx of $10 million in 1999. Since then, the company grew from $3 million in annual revenues to approximately $50 million in 2002.
TechRx is the largest provider of pharmacy systems that automate the drug prescription fulfillment process. These systems provide prescription drug customers with an integrated solution for in-store operations, centralized processing and connectivity to payers and physicians. In the last 12 months, the company’s solutions automated over 1.2 billion prescriptions.
“Part of the thrill of venture capital investing is finding and working with companies with a big idea,” said Kevin Kimberlin, Chairman of Spencer Trask & Co. “Everyone knows that the costs of prescription pharmaceuticals have reached the pain threshold. We focused on improving efficiencies in the supply chain with technology and a new business model. Our answer was automating the fulfillment of prescriptions by working with the existing infrastructure. TechRx’s solution alleviates the high costs of dispensing and fulfilling pharmaceutical orders. With the acquisition, the combined strengths of TechRx and NDC provide pharmacies of all sizes with solutions that can help them meet market challenges, and keep the costs of prescription drugs down.”
“TechRx is a prime example of our Value Creation Network in action,” said Kimberlin. “Spencer Trask tapped one of its own executives, Joe Porfeli, to lead TechRx. With his oversight and guidance, we recruited senior-level individuals to strengthen the management team and expand sales and marketing capabilities. Following our venture financing, the firm then brought in NDCHealth as a corporate investor. TechRx became the market leader in under four years, giving its venture investors a great payoff.”
About Spencer Trask
Spencer Trask is a leading venture capital firm discovering ideas for the 21st century. With a network of co-investors and business leaders, Spencer Trask provides entrepreneurs with financial and intellectual capital to transform bright ideas into world-changing companies. Spencer Trask invests in early stage and emerging growth companies in the communications, information technology and life sciences fields.
