Healthcare start-up Echo, which has developed a repeat prescription app, has been acquired by McKesson UK for an undisclosed fee.
McKesson UK, part of the US healthcare giant McKesson, rebranded from Celesio UK in November last year. It owns LloydsPharmacy, which has approximately 1,500 pharmacies in the UK as well as a number of other health and care services, and AAH, the largest pharmaceutical wholesaler in the UK.
Echo was co-founded by Stephen Bourke and Sai Lakshmi in 2015. Its app allows users to manage repeat prescriptions and have them delivered to their door. Echo does not charge users for using the app or for delivery, but standard prescription charges remain. It makes its money from the difference between the NHS prescription charge and the cost of purchasing medicines from wholesalers such as AAH.
It has secured approximately £9m in funding since it was established, including £1.8m in 2016 (see Investors prescribe extra funding for Echo) and £7m in Series A funding in 2017. It currently employs 85 people, working in a mix of technology, design, distribution and clinical roles. Existing investors are thought to be exiting as part of the acquisition.
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The benefits to both businesses are clear. McKesson UK has been trying to accelerate the development of its digital strategy and push further into online service delivery. LloydsPharmacy already has its own online doctor platform (similar to Zava, which supplies the service used by Superdrug and recently raised $32m). Echo will be able to benefit from the established and trusted LloydsPharmacy brand and synergies with AAH.
Date: June 24, 2019
Source: Tech Market View