The Pill Club Expands into Primary Care with $41.9M Funding

The Pill Club Secures $41.9 Million Series B Extension

Liz Meyerdirk, formerly an executive at Uber, assumed the position of chief executive officer at The Pill Club in January. The company, a provider of online birth control prescriptions and delivery services, had achieved record revenues, surpassing $100 million in annual run rate for the first time in its four-year operational history.

Meyerdirk observed that transitioning from the ride-sharing sector to healthcare presented fewer challenges than anticipated. Her focus centered on applying technological solutions “to logistical needs for routine use, and understanding how this simplifies daily life.”

New Funding and Investors

After six months in her role, Meyerdirk announced a new capital raise designed to leverage the current momentum within the women’s health market. The Pill Club has secured a $41.9 million Series B extension round, spearheaded by Base 10.

This funding round saw participation from existing investors, including ACME, Base10, GV, Shasta Ventures, and VMG. Additionally, new investors joined the round, notably Uber’s Dara Khosrowshahi, Honey’s George Ruan, and iGlobe.

The extension follows the company’s initial Series B investment of $51 million, announced over two years prior and led by VMG Partners. While previously valued at $250 million, the company has chosen not to disclose its current valuation, confirming only that the extension represents an increase in valuation.

How The Pill Club Works

New customers of The Pill Club complete a medical questionnaire and a digital form to provide personal details. The company then provides a cost estimate for the service.

If the pricing is acceptable, customers are connected with a nurse for consultation, either in real-time or through text messaging. “Immediate access to a nurse is often possible,” Meyerdirk stated, “though 24-hour availability is still under development.”

The nurse guides patients through available options, recognizing that “contraception isn’t a universally applicable solution.”

Upon a customer’s decision, The Pill Club can prescribe birth control through its affiliated pharmacy, delivering it directly to the customer’s address within two to three days.

Expansion and Revenue Model

Launched in 2016, The Pill Club initially offered an at-home birth control delivery service. Between 2016 and January 2021, the service expanded to 43 states and the District of Columbia.

In the last six months, the company has added services to five additional states, with a goal of reaching all 50 states by the end of 2021.

The company generates revenue through medical consultations, insurance reimbursements for prescriptions, and payments from patients without insurance coverage.

Focus on Accessibility and Insurance

The chief executive emphasizes the importance of integrating with existing insurance plans, including Medi-CAL and Family PACT, as a core component of the company’s value proposition. In the most recent three-month period, 16% of new patients utilized Medicaid.

“Companies like Oscar [Health] are innovating within the health insurance landscape, and Ro, Hims and Hers are primarily accepting cash payments,” she explained. “While that model works for those who can afford it, our commitment to equitable access means we believe everyone deserves access to birth control.”

The company maintains that working within the existing insurance framework is crucial for genuine innovation.

A company spokesperson stated, “Telemedicine that disregards insurance realities will inevitably capture only a limited market share.” They further added, “Cash-only systems are not designed for scalability. A truly innovative healthcare platform must operate within the existing system.”

A Women-Focused Healthcare Model

The Pill Club envisions a future where the traditional annual visit to a primary care physician is superseded by continuous, specialized care tailored for women’s health needs.

Meyerdirk expressed that many women, even those generally healthy, have questions regarding preventative screenings like mammograms and colonoscopies. The Pill Club aims to provide a readily accessible resource for these inquiries, offering a confidential alternative to consulting family members or making trips to a doctor’s office or urgent care facility.

Meyerdirk believes women’s healthcare should be comprehensive and readily available. Her future focus involves expanding The Pill Club’s services beyond contraception, exploring opportunities to modernize other facets of women’s health through digital solutions.

The company initiated a dermatology pilot program in March and broadened its 2020 period care pilot. Newly acquired capital will be allocated to the launch of additional services for its existing membership base.

Alongside this announcement, The Pill Club also disclosed the demographic composition of its 350 employees.

Currently, 72% of The Pill Club’s workforce identifies as women, while 28% identify as male. This gender distribution is mirrored in the executive leadership, with 62.5% being women and 37.5% being men. Regarding racial diversity, the company reports that 33% of employees identify as white, 19% as Asian, 16% as Hispanic or Latino, and 14% as Black or African American; 13% of employees chose not to disclose their racial identity.

“Our foundation is built on being by women, for women,” Meyerdirk stated, emphasizing the distinct approach compared to healthcare services designed by men for women. Her appointment followed the transition of The Pill Club’s founder and former CEO, Nick Chang, who stepped down from daily operations but retains shares in the company.

The trend of prescription medication delivered directly to consumers is expanding, with companies like Nurx, SimpleHealth, Walmart, and Amazon joining The Pill Club in this market.

“Greater choice and flexibility within the healthcare landscape are significantly overdue,” she commented. “Individuals should have access to a variety of excellent options when determining the most suitable provider for their everyday health requirements.”

Note: A previous iteration of this article incorrectly stated that The Pill Club offers birth control for in-person pickup. This has been corrected to reflect that birth control is delivered via the company’s own pharmacies.