Allscripts Buying ZappRx, a Startup for Prescription Drugs

Medical software maker Allscripts has purchased ZappRx, a start-up to modernize access to prescription drugs, according to two people close to the deal, the company said Thursday.

ZappRx has raised more than $ 40 million from investors owned by GV, the Alphabet Development subsidiary, and SR One, the venture capital firm of pharmaceutical giant GlaxoSmithKline. Two people aware of the transaction refused to disclose the financial terms of the transaction but said the price was lower than the amount obtained in venture capital.

In a statement, Allscripts said: "Allscripts is delighted to add the ZappRx platform to our expanding portfolio." The specialty prescription space is a key area for Veradigm, our commercial paying and science unit. We can not publicly share the details of our agreement. "The addition of ZappRx's team and technology will increase our solution offering and add value to our customers."

The purchase of ZappRx follows the acquisition of PillPack by Amazon, another start-up in the prescription drug industry, an area increasingly conducive to acquisitions.

The core business of Allscripts is the sale of electronic medical record software to hospitals and other health care providers. In January, she acquired PracticeFusion, another electronic medical records company. With the new agreement, he seeks to diversify beyond his core business.

ZappRx was founded in 2012 in Boston, Mbad. Zoe Barry, his CEO, previously worked on Wall Street and created the company after the diagnosis of severe epilepsy diagnosed at his brother's home. ZappRx specializes in helping users access the so-called "specialty" drug clbad, which includes costly and complex procedures.

ZappRx did not immediately return requests for comments.

Barry, who drives a race car in his spare time, has recruited a team of engineers to create a cloud-based system that medical service providers can use to speed up the time needed for a patient to access a specialty drug, after its prescription.

ZappRx recently announced a large number of important customers and partners, including Bayer Pharmaceuticals in 2019 and the CureDuchenne Research Group at the end of 2018.

WATCH: How Amazon could change the pharmacy sector.