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# Rightway Raises US$155M to Take On the Big Three Pharmacy Benefit Managers
- URL: https://www.theinvestorsociety.com/rightway-raises-us-155m-to-take-on-the-big-three-pharmacy-benefit-managers/
- Published: 2026-09-26T16:00:33.000Z
- Updated: 2026-09-26T16:00:32.000Z
- Author: The Editor
- Tags: Western Hemisphere

Rightway, a New York-based pharmacy benefit manager (PBM) and care navigation company, raised a US$155 million Series E, it announced on September 24\. Francisco Partners led the round, with Thrive Capital and Khosla Ventures participating. Bloomberg reports the deal values the company at US$1.75 billion and brings total funding to about US$281 million. Rightway was founded in 2017 by Chief Executive Officer Jordan Feldman.

PBMs negotiate drug prices and manage prescription coverage on behalf of employers. Rightway says it now works with 45 Fortune 500 companies, close to 10% of the list, all of which previously used one of the three largest PBMs, and serves about 3 million people. Unlike traditional players, it earns only a per-member fee, passes all rebates back to clients and does not own pharmacies. The new capital will expand its AI tools to reduce pharmacists' administrative work, spot savings and give employers more flexible plan options. Feldman told Bloomberg the company could consider going public in about four years.

## Market Context

The PBM market is highly concentrated. Express Scripts, CVS Caremark and OptumRx, owned by Cigna, CVS Health and UnitedHealth Group, control roughly 80% of it, and critics have long argued that pay tied to drug list prices and rebates rewards higher costs. That pressure is now law: the Consolidated Appropriations Act of 2026 requires PBMs to pass 100% of rebates through to employer health plans and to give large employers detailed drug-level cost reports, though the rules do not fully take effect until 2029.

Rightway has grown steadily through that debate. It was valued at US$1.1 billion in a US$100 million Series C in 2021 and raised US$108.75 million in a Series D in 2024\. The new valuation is a moderate step up, which suggests investors are paying for durable client growth rather than hype. Mayo Clinic is set to move to Rightway in January, adding another large name to the roster.

## The Signal

> "We built our financial model to reward getting members onto high-value drugs, and we embedded clinicians in the workflow and AI on the backend to do it." — Jordan Feldman, Co-founder and Chief Executive Officer, Rightway

## Regional Relevance

For the United States, Rightway's growth shows that employers are willing to leave the largest PBMs when they are offered clearer pricing. Prescription drugs are one of the fastest-growing costs in employer health plans, and companies now have legal duties to understand what they pay. Transparent, fee-only models are well placed to benefit as the 2026 reforms push every PBM toward similar disclosures.

For New York, Rightway strengthens the city's role as a center for health-tech companies that sell to large employers. Its client list, which includes companies worth more than US$1 trillion, gives the local ecosystem a scaled challenger in a market long dominated by incumbents based in Missouri, Rhode Island and Minnesota.

## The Other Side

**Does reform erase Rightway's edge?** Once the law forces all PBMs to pass through rebates and disclose costs, "transparent" becomes the minimum standard. Rightway will need to compete on service, clinical results and technology, not just on its pricing model.

**Can a challenger match the big three on price?** Scale drives negotiating power with drugmakers. With about 3 million members, Rightway is still small next to incumbents that manage prescriptions for tens of millions, and some employers may accept less transparency in exchange for deeper discounts.

**Is an IPO four years away realistic?** Public investors will look closely at margins in a fee-only model, and health-tech listings have been mixed. Hitting that timeline depends on keeping Fortune 500 clients from returning to incumbents that are now reshaping their own offers.

## Sources & Transparency

- [Rightway Raises $155 Million as it Leads the Next Generation of Pharmacy Benefits](https://www.prnewswire.com/news-releases/rightway-raises-155-million-as-it-leads-the-next-generation-of-pharmacy-benefits-302888382.html?ref=theinvestorsociety.com)
- [Rightway raises $155M to expand pharmacy benefits technology](https://www.mobihealthnews.com/news/rightway-raises-155m-expand-pharmacy-benefits-technology?ref=theinvestorsociety.com)
- [Rightway Eyes IPO After $1.75B Valuation](https://www.briefs.co/news/rightway-eyes-ipo-as-upstart-pbm-leans-into-transparency-pit/?ref=theinvestorsociety.com)
- [The Week's 10 Biggest Funding Rounds: Cybersecurity, AI And Health Take The Lead](https://news.crunchbase.com/venture/biggest-funding-rounds-cybersecurity-ai-health-island-cyera/?ref=theinvestorsociety.com)
- [2026 Pharmacy Benefit Manager Reform: What Employers Need to Know](https://www.ebglaw.com/insights/publications/2026-pharmacy-benefit-manager-reform-what-employers-need-to-know?ref=theinvestorsociety.com)