Founders
Peter Park
Sid Viswanathan
Susie Crowe, PharmD, MPH
Description
Building in-house pharmacies for safety net clinics.
We’re excited to announce our investment in Alchemy, a startup revolutionizing the way safety net clinics launch, manage, and grow their pharmacy services by enabling them to rapidly deploy best-in-class in-house pharmacies. AlleyCorp invested in Alchemy’s pre-seed last summer and joined Andreesen Horowitz as they led Alchemy’s $31M Seed round. This funding will give Alchemy the fuel to reach 20 safety net clinics by the end of this year.
Alchemy has a best-in-class team with founders that have a true insight into the space they are building in. Alchemy’s co-CEOs, Peter Park and Sid Viswanathan, worked together at Truepill, tackling telehealth-enabled prescription delivery in the US. They are joined by Susie Crowe, who brings clinical experience to the myriad challenges US safety net providers face in building and scaling healthcare programs for the most vulnerable.
Alchemy’s mission is to empower a specific type of safety net provider, often called a 340B covered entity, to establish their own on-site pharmacies, typically at STD clinics, Ryan Whites, and FQHCs, with a focus on serving patients living with HIV and Hepatitis C. Established in 1992 under the Public Health Service Act, the 340B Drug Pricing Program allows safety net clinics (who often serve Medicaid, low-income, and other vulnerable populations) to purchase outpatient drugs at significantly reduced prices. The program enables these clinics to use drug savings ranging from 25-50% to stretch limited resources, provide more comprehensive services, and reach America’s most vulnerable patients at scale, all while driving incremental revenue.
Alchemy is the physical and digital infrastructure layer that enables more clinics to bring those 340B pharmacy programs in-house, managing everything from ROI analysis and site evaluation to securing licenses and training pharmacy staff, ultimately allowing clinics to focus on what they do best—providing care to their communities. We were particularly impressed with Alchemy’s holistic approach: it not only sets up the physical pharmacy but also integrates clinical and digital layers to enhance patient care beyond the clinic walls. This comprehensive model addresses social determinants of health, making it easier for patients to access the medications and support they need.
Alchemy’s early results speak for themselves: clinics partnering with Alchemy have seen significant improvements in their pharmacy operations. Equality Health Group achieved 99% PBM in-network status in just 9 weeks, illustrating the speed and efficiency of Alchemy’s setup process. Partner clinics have also seen demonstrable improvements in prescription volume (50%) and net revenue (30%), with an ROI breakeven in 12 weeks or less.
Alchemy represents the rare and worthwhile example of delivering a win-win for under-resourced providers and patients at venture-scale. We believe that their innovative approach will improve healthcare access and outcomes to many more people across the country.
We could not be more excited to partner with Peter, Sid, and Susie. To get in touch about partnerships with Alchemy or connect with the AlleyCorp’s Economic Infrastructure investment team, please drop us a note.
