NuScriptRX lands $5M from VCs

Series C add-on lifts pharmacy venture’s funding since spring of '09 to nearly $30M

The former New Day Pharmacy has landed $5 million from a group of investors, four of which are TNInvestco funds.

NuScriptRX officials say the cash will help its executive team — led by acting CEO Donald Taylor — build out the company’s infrastructure, which focuses on working with long-term care facilities. The venture’s revenue run rate has quadrupled in the past year to $30 million, officials said, and the company has created more than 60 jobs in Tennessee.

This latest funding — an add-on to the $8 million Series C raise NuScriptRX completed last September — was led by longtime investor Council Capital and its affiliated TNInvestco, the Council & Enhanced Tennessee Fund. The raise brings to almost $30 million NuScriptRX has raised since the spring of 2009. The first of those fundings recapitalized the company after it had filed for Chapter 11 bankruptcy in February of that year.

Other investors in this latest round are:

• Clayton Associates
• Council Operating Partner Chip Lacy
• Envest of Virginia Beach, Va.
• TNInvestco funds Nest-TN of Tullahoma, the Nashville Capital Network’s Tennessee Angel Fund and Innova of Memphis
• An unnamed strategic investor

”With the growth in the elderly population and increasing dissatisfaction with the cost and quality of service from the current pharmacy model, NuScriptRX is clearly on the right side of change in healthcare,” said Denny Bottorff, chairman of the NuScriptRX board and managing general partner of Council Capital.