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DecisionRx, a 2-year-old Indianapolis health care technology company, has been awarded a $100 million credit facility to help fund its growth.
The startup said Thursday it entered into the credit facility with global investment firm Carlyle, a global investment firm with $382 billion of assets under management.
DecisionRx uses technology to recommend medication decisions to physicians and pharmacists based on genetic profiles, existing medication regimes and contraindications.
The company said medication failure accounts for at least 16% of total health care spending, and medication therapy optimization has been shown to reduce total annualized cost of care by $3,600 for Medicare patients and $1,200 for patients under age 65.
A credit facility is a type of pre-approved loan which allows the borrower to borrow money on an ongoing basis over an extended period of time. The credit facility is expected to fund lab testing and comprehensive medication reviews by DecisionRx pharmacists for over 100,000 patients.
As part of the deal, Carlyle will get an option to acquire 25% of the outstanding equity of DecisionRx.
“This transaction strongly validates investors’ belief in our innovative approach to improving patient outcomes by helping providers avoid medication failure at scale,” DecisionRx CEO James Wallace said in written remarks.
Wallace is a former executive with Amerilife, Anthem Inc., Conseco Health and TWG Capital. He unsuccessfully ran for the Republican nomination for Indiana governor in 2012.
The company’s executive chairman is Brad Bostic, founder and CEO of Indianapolis-based medical software company hc1.com.
“We are pleased to partner with DecisionRx in this important phase of growth for the company,” Akhil Bansal, head of credit strategic solutions at Carlyle, said in written remarks. “DecisionRx’s focus on increasing prescribers’ efficacy of care can significantly improve patient outcomes and we believe this will play an important role in the future of value-based care.”
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