Phlo Technologies, UK digital pharmacy leaders, have today announced their acquisition of the UK arm of US-based healthcare unicorn Truepill.
This is a landmark consolidation in the sector, and one of the most significant acquisition deals in the history of digital pharmacy in the UK.
Phlo are now the market leaders in the provision of B2B pharmacy services in the UK, where the market is on a strong post-pandemic upward trajectory. This acquisition follows Phlo’s £10m Series A raise, announced in February 2023.
Following Truepill’s decision to focus solely on its US operations, a highly competitive bidding process for the acquisition of the UK business was announced in the autumn of 2022. Phlo emerged as the preferred bidder on account of synergies in technology infrastructure, patient care, and the pharmacy services provided both for NHS and private partners.
Phlo has acquired Truepill’s partnerships with several of the UK’s most popular digital healthcare providers, including:
Phlo have also acquired the Truepill UK’s technology stack including their full set of Application Programming Interfaces (APIs) and prescribing technology. Once integrated, Phlo’s technology will facilitate the prescribing, dispensing and delivery of prescribed and off-the-shelf medications and treatments directly to the users of these platforms.
As part of a commercial partnership attached to the deal, Phlo has committed to support Truepill’s US partners should any of them look to launch into the UK market. Both organisations have also agreed to explore further joint ventures as appropriate.
This consolidation will enable Phlo to expand the geographic footprint of its operations, with plans including the launch of same-day on-demand medication delivery in Manchester alongside existing services in Birmingham and London.
Phlo Digital Pharmacy has also acquired Truepill’s NHS patient base. Phlo Digital Pharmacy is the challenger brand owned by Phlo Technologies which provides patients with a seamless end to end NHS digital pharmacy service to patients across England.
Phlo plans to increase its headcount, which is now at 90 employees across the UK, and all of Truepill UK’s existing pharmacy and warehouse staff have been offered jobs with Phlo.
“Phlo’s acquisition of Truepill UK marks a hugely significant moment in the evolution of digital healthcare in the UK. We’re delighted that this market consolidation will enable further improvements to the excellent service that Phlo offers to patients and partners, and also allow us to extend that service by welcoming new patients and partners across the country. I’d like to thank the team at Truepill for their assistance in making the sale a smooth one and for their commitment to their patients and partners during this time.”
“Following our Series A raise, Phlo is in a stronger position than ever to lead digital transformation in the pharmacy sector and to play a pivotal role in improving health outcomes in the UK.”
“The Truepill deal caps an incredibly busy and successful six-month period for the team. Fuelled by our successful Series A raise, the Truepill acquisition will accelerate our digital healthcare strategy throughout the remainder of 2023 and beyond. The levels of commitment from the Truepill team in effecting a smooth transition have been outstanding, and we are looking forward to working together to fuel the next phase of our growth.”
“As Truepill made the decision to focus on the US market, our priority was to ensure our UK patients, clients and staff faced as little disruption as possible.
“Our priority was to find the right acquirer who shares Truepill's vision and ethos of the future of pharmacy. That meant finding a business that is patient focused, with a strong technology stack and who were committed to growing and innovating in the UK market with a focus on servicing current and future consumer health clients. In Phlo, we found a company which shared all these objectives, and I don’t think we could have found a better fit. I am delighted to be continuing an ongoing commercial partnership with Phlo that will allow our US partners to launch in the UK in the future.”
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