InStockRx Raises $5M Series A to Grow Its Pharmacy-to-Pharmacy Marketplace

Pharmacies are working with thinner margins than ever, juggling rising costs, supply constraints, and shelves of surplus brand medications they can't move. InStockRx (Techstars 2023) is tackling that problem head-on, and it just raised $5 million to do more of it.

What InStockRx does

InStockRx runs a pharmacy-to-pharmacy marketplace where verified pharmacies buy and sell brand medications directly with one another. Sellers turn surplus inventory into recovered cash; buyers source stock they're short on and save up to 40% on brand medications. Every trade on the platform automatically generates the T3 documentation, Transaction Information, Transaction History, and Transaction Statement needed to support DSCSA compliance.

The platform is free to join, with no monthly fees, and pharmacies pay only when they sell. It works with any pharmacy management system and lists inventory exclusively from verified pharmacies. Trading Partner Groups let members build private networks with preferred partners, and Pharmacy Concierge support helps simplify the buying and selling process.

InStockRx now serves more than 1,600 verified pharmacies, ranging from independent, family-owned drugstores to multi-location operators. Transaction volume has been growing 50% month over month, listings sell in about 5 days on average, and buying pharmacies typically save 30% versus NADAC reference pricing.

"Pharmacies are running on thinner margins than ever, and they're doing it while keeping medications on the shelf for the patients who count on them," said Mac Dougherty, CEO of InStockRx. "We give them a practical way to recover surplus, source what they're short on, and keep cash moving, on a network where they know exactly who they're trading with and can build communities of like-minded pharmacies to be stronger together. This funding lets us keep building for pharmacies of every size and extend the network to larger operators and organizations."

Why it matters

InStockRx graduated from the Techstars Boston Accelerator in 2023, and Techstars also participated in this round. The investment comes as the company moves from proving out its model with independent pharmacies to extending its network to larger operators and organizations.

Congratulations to the InStockRx team on this milestone. Learn more at instockrx.com.