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Allscripts Buys Prescription Drug Start-Up

Allscripts, a major player in the medical software space, has acquired the prescription management start-up ZappRx.

  • Allscripts will include ZappRx software’s functionality in a new update to its Veradigm platform.
  • ZappRx is a cloud-based system that specializes in speeding up the time it takes for a patient to access complex and high cost prescriptions (specialty medicine), after they are prescribed.
  • Veradigm aims to improve a practice’s workflows. The platform focuses on delivering data insights to providers at the point-of-care to improve reporting and process efficiencies.
  • The ZappRx deal reportedly closed for under $40 million.

Our Take

  • The ZappRx acquisition is likely a response to Amazon’s acquisition of PillPack, a $753 million prescription management start-up. PillPack and Amazon are in the process of building out physical pharmacies. PillPack’s vertically integrated business model threatens the position of pharmacy benefit managers who act as middlepersons between practitioners and patients. Once massive companies like Amazon started to shake up the prescription software and distribution space, veteran players have to adapt or get pushed aside. Therefore, Allscripts is making moves to stay relevant in a marketplace that is rapidly changing.

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