US-based institutional pharmacy NuScriptRX closed an $8m round of series C financing, and secured a $5m line of credit with Square 1 Bank, on Monday.
The series C round was led by private equity firm Council Capital, with participation from venture capital (VC) firms Clayton Associates, Envest, Council & Enhanced Tennessee Fund, Nest-TN, Tennessee Angel Fund and Innova, as well as a further unnamed strategic investor.
The latter four firms are all part of the Tennessee General Assembly’s $200m TNInvestco program granting tax credits to Tennessee-based VC funds, which they could market to insurance companies in exchange for funding which would be re-invested in local companies such as NuScriptRX.
NuScriptRX previously raised $10.2m under its prior name of New Day Pharmacy, in May 2009, from Council Ventures – one half of the Council & Enhanced Tennessee Fund – Clayton Associates and various angel investors. The Council & Enhanced Tennessee Fund provided an undisclosed amount of series B funding in May 2010.
NuScript RX’s institutional pharmacy system works by distributing drugs to a network of care facilities throughout the US from a central distribution hub, using an automated system that enables customers to obtain the drugs more quickly than they would using traditional systems.