Expansion and IPO Highlight Exceptional Year for Burlington County-Based Tabula Rasa Healthcare, Inc.
Tabula Rasa's year of extraordinary growth was accentuated by the ribbon cutting at its newly-expanded headquarters in Moorestown. (Photo credit: Tabula Rasa)
TRENTON (December 7, 2016) – Healthcare information technology company Tabula Rasa Healthcare, Inc. (TRHC) will enter 2017 buoyed by its many growth milestones in 2016. This year alone, the New Jersey Economic Development Authority (EDA)-supported company became a publicly traded entity, expanded into a larger location in Burlington County, and inked an agreement with a trade association serving hundreds of healthcare organizations.
TRHC, which formerly did business as CareKinesis, partners with healthcare organizations to provide and coordinate medication risk mitigation services for individuals with complex medication needs. The Burlington County-based company offers personalized medication risk mitigation services, unique robotic reminder packaging systems, and an online medication risk mitigation portal.
“Unintentional overdoses and misuse of prescription drugs result in more than 100,000 deaths annually, approximately 125,000 hospitalizations, and one million emergency room visits,” TRHC Chief Executive Officer (CEO) and Chairman Dr. Calvin Knowlton said. “Through our patient-centric, data-driven technology, we are striving to reduce adverse drug events, enhance compliance and quality of care, and mitigate patient risk.”
After experiencing an annual growth rate of over 80 percent since its launch in 2011, TRHC, which currently employs 250 people, filed for an initial public offering (IPO) earlier this year. The IPO, which closed in September, raised $52 million. The company plans to use the funds to pay down existing debt, acquire intellectual property, and expand its sales infrastructure.
Another example of TRHC’s success was the expansion of its headquarters this year into a 75,000-square-foot facility in Moorestown. The move, driven by the company’s rapid growth, was encouraged by the approval of Grow New Jersey (Grow NJ) tax credits. Grow NJ is the state’s primary program for job creation and retention.
The company received a $500,000 loan from the EDA in 2012 through the Edison Innovation VC Growth Fund to support working capital needs. Created to enhance support of early-stage businesses that have attracted funds through venture capital investors, the Fund helps companies directly finance uses such as hiring key staff, product marketing, and sales by providing up to $1 million in subordinated convertible debt financing.
“TRHC is a prime example of a New Jersey company that is leveraging State resources to accomplish its goals and positively impact the healthcare industry,” EDA CEO Melissa Orsen said. “It’s exciting to watch innovative companies like TRHC grow in New Jersey and expand their presence in the marketplace.”
TRHC also entered into a three-year agreement this year with NJHA Healthcare Business Solutions Inc., a subsidiary of the New Jersey Hospital Association (NJHA), to offer TRHC’s proprietary Medication Risk Mitigation™ products and services to NJHA’s nearly 400 member healthcare organizations.
@NJEDATech asked Knowlton about his company’s experience in New Jersey and its plans for the future:
Your company has experienced significant growth in the past year. To what do you attribute these successes?
TRHC’s vision is to be "the vanguard in eliminating preventable adverse drug events.” Our mission is "improving lives through innovative medication risk mitigation technology”.
The mission of TRHC quickly becomes the passion of the individual. Our culture is one where we emphasize that behavior is what supports our values. Focusing upon altruism and caring for clients and team members, we value personal integrity, innovation, accountability, problem resolution, equality, service and product excellence, client and team collaboration, and fun!
From the very beginning of our company, we set out to be different. Different in how we treat our clients, different in how we work with each other, and different in the results we achieve. These differences are best captured now in the 32 “fundamentals” that are the foundation of our unique culture. We call it: The TRHC Way.
I have lived here my whole life and appreciate the EDA’s for supporting entrepreneurial endeavors.
What’s in store for TRHC in 2017?
We are continuing to expand our services for the frail elderly in the United State, including entering offering services to companies and organizations within the healthcare payor industry.
What advice do you have for entrepreneurs starting out in New Jersey?
Beyond the requisite passion and domain expertise entrepreneurs must embody, reach out to the EDA to understand the variety of funding support that is available to you.