Centene-backed RxAdvance closes $50M funding round

A pharmacy benefit manager (PBM) backed by Centene closed a $50 million funding round last week.

Massachusetts-based RxAdvance finalized the venture funding round on Friday, according to a Form D filed by the company. The filing indicates just one investor was a part of the offering.

Insurance giant Centene announced an initial strategic investment in the company in March for an undisclosed amount. The transaction, which allows Centene to expand its investment in the future, came just a week after Cigna announced it would purchase Express Scripts. That deal was recently approved by the Department of Justice and is on pace to close by the end of the year.

Centene Chairman and CEO Michael F. Neidorff pointed to RxAdvance’s “transparency [and] disruptive technology” as a way to bring down costs.

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Former Apple CEO John Sculley, who serves as the company’s chairman and chief marketing officer, previously told CNBC the company plans to generate $20 billion in annual revenue by the “early 2020s” by automating claims processing and limiting the number of employees it needs.

Sculley also hinted that the company could partner with the Amazon-JPMorgan-Berkshire Hathaway health venture.

The cloud-based solution combines pharmacy, medical and laboratory data to deliver "actionable intelligence," according to the company's website.

Prior to Centene’s investment this year, the company closed just two series A rounds in 2014 and 2016.

An RxAdvance spokesperson did not return a request regarding who participated in the funding round. Centene also didn’t return a request for comment.