UnitedHealth Group is jumping into the online pharmacy space with the acquisition of startup DivvyDose, according to a media report.
CNBC's Christina Farr reported Tuesday that the insurer bought DivvyDose for more than $300 million, citing a person familiar with the deal.
Privately held DivvyDose was founded by physician Arvind Movva as a home-delivery pharmacy that focuses on patients with multiple chronic conditions. The company, which was founded in 2015, ships pre-sorted medications to patients with the dosage information and time and dates they should be taken on each packet.
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Bloomberg first reported the acquisition discussions between UHG and DivvyDose last week. UHG did not provide any comment on the deal.
UnitedHealth's stock was flat late Tuesday after the deal was reported, according to Investors.com.
DivvyDose hasn’t raised any institutional investment from venture capital funds or private equity, according to Crunchbase.
Many health plans and large retailers are snapping up online pharmacy startups that help patients with chronic illnesses keep track of the medicines they take. It provides a way to tap into a large group of consumers who are increasingly using digital pharmacies, especially those trying to manage multiple chronic conditions.
Amazon bought PillPack in 2018 and Walmart snapped up medication management technology from startup CareZone.
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The market also has attracted major investment dollars. Alto Pharmacy has raised over $350 million to date, with its latest $250 million funding round vaulting its valuation over the $1 billion unicorn mark.
In September, Capsule scored $200 million in its latest funding round and plans to expand its same-day prescription delivery services nationwide.
Truepill, a company that provides the backend technology for direct-to-consumer brands like Hims and Nurx, recently raised $75 million.
Rideshare giant Uber also is trying to crack the prescription drug delivery market. Uber Health inked a partnership with NimbleRx to offer online prescription ordering and drug delivery direct to consumers in Seattle and Dallas.