Fullscript Raises $240M to Grow Integrative Medicine Marketplace

The Growing Market for Complementary and Alternative Medicine

The realm of complementary and alternative medicine – encompassing practices like yoga and a vast array of supplements – is experiencing substantial growth. The global industry reached a valuation of $82.3 billion in 2020 and is projected to continue expanding rapidly in the coming years.

Fullscript Secures $240 Million in Funding

Fullscript, a company specializing in a wholesale backend and storefront builder for alternative health practitioners’ supplement businesses, has recently received a significant investment. The Ottawa, Canada-based company secured $240 million to fuel its expansion across North America and enhance its tools for practitioners.

Integrated Medicine: The Future of Healthcare

According to Fullscript co-founder and CEO Kyle Braatz, “We believe integrated medicine will be medicine in the future.” He notes that a significant percentage of practitioners are already prioritizing wellness and prevention, moving beyond solely pharmaceutical interventions.

Fullscript’s Platform and Reach

Currently, Fullscript offers access to approximately 20,000 products from around 300 brands. The platform serves approximately 30,000 practitioners, including medical doctors, naturopaths, osteopaths, and other therapists.

Investment Details and Company Growth

The investment was led by HGGC and Snapdragon Capital Partners, firms specializing in mid-market private equity and health/wellness investments, respectively. While the exact valuation remains undisclosed, Fullscript has demonstrated impressive financial growth, projecting $300 million in revenue for the upcoming fiscal year, a substantial increase from $40 million five years prior.

A B2B2C Model Inspired by Shopify

Braatz draws parallels between Fullscript’s business model and that of Shopify. Just as Shopify empowers businesses to create and manage online storefronts, Fullscript provides practitioners with the tools they need to operate their online businesses.

Services Offered by Fullscript

Fullscript assists practitioners in several key areas. These include supplement sourcing, prescription management with options for in-office pickup or home delivery, integration of treatment data into electronic health records, and provision of educational materials for patients.

Empowering Practitioners with Technology

“Just as Shopify empowers merchants, we empower practitioners,” Braatz states. Fullscript is actively developing additional technology to enhance its platform, including advanced analytics and tools for patient monitoring and purchase tracking.

The Rise of Online Health Services

Fullscript’s growth coincides with a broader trend towards online health services, particularly in the realm of medicines and supplements. This increased activity brings potential competition from major players like Amazon and other companies like Ro, but also signifies a growing acceptance of the online component of healthcare.

Challenges and Acceptance of Complementary Therapies

Despite growing interest, complementary therapies face challenges regarding widespread acceptance and usage. While consumer and practitioner interest is increasing, obstacles remain.

Insurance Coverage and Regulatory Hurdles

A significant barrier is the limited insurance coverage for these treatments compared to standard medical care. Pharmaceutical approaches typically undergo rigorous testing and regulatory approval, leading to greater acceptance by insurance providers, a process that supplementary medicines often lack.

Fullscript’s Payment Model

Currently, Fullscript operates outside of the insurance backend, with patients directly responsible for all product payments.

A Shift Towards Value-Based Healthcare

Braatz believes attitudes towards integrative approaches are evolving, driven by the limitations of conventional medicine. He notes a shift in compensation models from volume to value-based care, and increasing investment in integrative clinics by hospital systems.

Long-Term Investment Strategy

This evolution is a key component of the investment strategy. The potential for growth and the strength of Fullscript’s platform were highlighted by Bill Conrad of HGGC, who expressed excitement about the investment opportunity.

The Future of Integrative Medicine

“We are long term believers in the Fullscript story, and we thought that its platform, the tech they developed, and the reviews of that we’ve seen of it from the industry, would be an exciting investment.” Conrad stated, emphasizing the substantial potential of the company.