David Blair Launches New Pharmacy Benefit Management Company

LucyRx Will Make Prescriptions More Affordable and Shed Light on Opaque Industry Practices

BETHESDA, Md., Aug. 10, 2023 /PRNewswire/ -- Healthcare service executive David Blair announced the formation of LucyRx – a new pharmacy benefit management company (PBM) to provide health plans a national scale, independent solution to effectively manage their prescription costs. Mr. Blair is joined by successful industry leaders, Martin Payne and Josh Lynn, as co-founders. The three executives have worked together over the past 15 years building and operating companies in the PBM and ancillary healthcare service markets. 

Mr. Blair was Chairman and Chief Executive Officer of Catalyst Health Solutions, a full-service pharmacy benefit management company. Under Mr. Blair's leadership, Catalyst grew from a start-up to a Fortune 500 company with over $6 billion in annualized revenues. Catalyst was sold in 2012 for $4.8 billion and is now part of United Healthcare. More recently, Mr. Blair co-founded and served as Executive Chairman for Gateway Health Partners, a pharmacy cost containment and formulary management company. Gateway Health Partners was subsequently combined with Maxor National Pharmacy Services and sold in early 2023. Initial investors of Gateway Health Partners realized a 2,000% return over their seven-year investment. 

Mr. Payne, who served as an Executive at Catalyst and partner to Gateway Health Partners, commented, "The PBM market has experienced significant consolidation the last two decades by the 'Big 3' PBMs leaving few, credible alternatives for health plans looking for an independent pharmacy benefit management solution. Despite sound management teams and next generation technology, middle-market PBMs have struggled to gain market share due to limitations in their offerings and lack of competitive pricing. As a national-scale PBM, LucyRx will pursue our proven organic growth strategy in both the health plan and employer markets augmented by strategic add-on acquisitions."

"There is a huge need for value-add pharma services companies to provide critical solutions for health plans struggling to keep up with outsized increases in complex, high-cost specialty drugs and a population that is rapidly aging, increasing prescription drug usage, and dealing with the growing prevalence of chronic conditions," noted Mr. Lynn, former CEO of Healthcare Services Acquisition Corp and an experienced healthcare investor across multiple asset classes. "By integrating LucyRx with advanced technology and leveraging proprietary relationships built over the last three decades, LucyRx is well positioned to offer both a leading, national scale PBM and a broader set of tools and strategies for health plans to reduce costs and better serve their members."

"We have assembled a first-class team to execute our strategy and are thrilled to have Alex Motola join our team as a co-founder," Mr. Blair commented, adding "His expertise will be invaluable as we look to deploy $500 million in equity for strategic acquisitions over the next several years." Mr. Motola has over ten years of investment experience across the capital structure investing in the healthcare space. "Demand is growing for an independent alternative to the Big 3, and conditions in the market are ripe for a strategy like ours," said Mr. Motola, who added "We have a well-defined playbook we've refined over several prior investments. We are eager to put it to work again."

About LucyRx

LucyRx was founded in 2023 and is headquartered in Bethesda, MD. The Company was named LucyRx, as Lucy derives from Latin for 'light' symbolizing the company's mission to illuminate the complexities of pharmacy benefits and guide clients towards optimal healthcare solutions.  LucyRx will provide enhanced transparency in drug pricing, reduced claims process complexity, and a high-touch service model, filling gaps in the current market.  The company is currently evaluating acquisitions and partnership opportunities. For more information, please visit www.lucyrx.com.

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SOURCE LucyRx