Startup Unit Dose Solutions Closes on $1.25 Million in Financing
Posted May 15, 2006
MORRISVILLE, N.C. — Unit Dose Solutions
, a startup launched in 2005 that focuses on outsourced pharmacy solutions, has closed on $1.25 million in Series A financing.
The company said the round was oversubscribed.
With the funds, Unit Dose Solutions plans to open a second regional operation center, which will be in New Jersey, and to expand sales and marketing efforts.
The company employs 34 people and will be adding headcount based on customer command. By year's end the company expects to employ 60 people, Chief Financial Officer David Bass told WRAL Local Tech Wire.
Leading the round and joining the company's board are angel investors Mike Fitzgerald and Jim Liebel. Fitzgerald is an operator of community pharmacies, including Blue Ridge Pharmacy in Raleigh, and is a member of the industry advisory board for Cardinal Healthcare. Liebel is a pharmaceutical veteran and currently serves as a director for Glycorex AB, Anaprobe AB and G-Force International Entertainment Corp.
In all, nine people invested in the round. One angel investor and resources from founder and Chief Executive Officer Dennis DiVenuta helped get the company launched.
Unit Dose Solutions offers drug repackaging services through which bulk inventory is converted to individual sealed packages with bar codes and labels. Its target markets include hospital, nursing home, assisted living and other institutional pharmacies, private physician practices, and pharmaceutical manufacturing companies.
The company already has some 30 customers, all of which are hospitals, including Duke, UNC Health System and Wake Med. It is generally cheaper to outsource pharmacy solutions, and an outsourcing company can provide a higher level of accuracy to meet FDA requirements for packaging of drugs, Bass said.
"Nobody went to a pharmacy to learn how to run a repackaging machine," he added.
DiVenuta outlined aggressive growth plans for the company.
"This influx of new capital will enable us to complete the development of our business model for unit dose / bar coded drug repackaging, including significant technology enhancements to support a scalable, multi-location operation," the CEO said. "We are using these funds to open our second regional service center in Harrison, New Jersey, and to expand our sales and marketing presence in both the Carolinas and New York/New Jersey markets."