Capital RX rebrands into Judi Health, earning $400 million investment
The company announced Tuesday that transparent pharmacy benefits manager Capital RX has received a $400 million investment and has been renamed in Judy Health as it expands pharmacy benefits.
The $400 million investment includes $252 million in Series F financing led by Wellington-managed and general catalysts, as well as Generation Investment Management, Growth Equity in Goldman Sachs Alternatives, 9-Citizen Capital, B Capital, B Capital, Edison Partners, Prime Health Investments and Transformation Capital. It also includes additional investment in corporate securities, which means investors are buying stocks from existing stakeholders.
The company raised a total of $607 million in funding. It is valued at $3.25 billion.
Financing is used to support the deployment of Judi Health Enterprise Health Platform, including:
- Capital RX: Transparent PBM for self-protection employers
- Judi Health: Health benefits management solutions for employers, TPAs and health plans. It provides nursing navigation support for pharmacy, medical, vision and dental benefits
- Judi: A software service solution that helps health plans manage their claim workflows
CEO AJ Loiacono told Medcity News that the company is also investing in research and development. Additionally, he will look for investment opportunities in companies that have complementary technologies but don’t have anything in our core building or service.”
When asked about Judi Health's exit strategy, Loiacono said the company has not disclosed its exit plan yet.
Wellington Capital believes that Judy Health “expands in due time.”
“As PBM reforms improve, employers demand transparency and control – Capital RX’s independent, technology-driven platform aims to achieve both. They extend to a wider aspect of welfare management to meet the needs of the market and help legacy systems not release the capabilities of AI in ways that cannot be unleashed,” said Joshua Sommerfeld, who led a statement in Wellington Management.
Employers expect U.S. health care costs to increase by about 9% in 2026, according to employers’ expectations, the company’s announcement. Pharmacy fees are the main driver of this increase, and many are turning to transparent PBMs such as Capital RX and Navitus to solve this problem.
Judi Health has served the lives of more than 4 million employers PBM members and 54 million health plans. According to Loiacono, its purpose is to continue this momentum.
“Our rebranding of Judy Health reflects the company’s broader mission to provide our country with the infrastructure we deserve for health care,” he said. “For employers, health plans, and ultimately patients, this means building a platform that not only meets their needs today, but also adapts to their needs.”
Photo: Brianajackson, Getty Images
