AdhereTech, a startup developing smart wireless pill bottles, has received a strategic investment from Argentum, a growth equity firm that focuses on companies in the software, technology and healthcare sectors.

In an emailed response to questions, AdhereTech co-founder and CEO Josh Stein said the company is unable to disclose the amount of the investment.

The new financing will be used to increase the company’s pharmaceutical and pharmacy partnerships and expand into more healthcare verticals. Additionally, it will go toward further enhancing the company’s data analysis and engineering applications.

Stein noted that the company is gathering real-world evidence about how patients take their medications and using it to deliver data-driven patient care.

He also commented on AdhereTech’s relationship with Argentum.

“We have known Argentum for over two years, and we recently got to the point where we realized that a growth equity infusion from Argentum — along with their expert guidance — could accelerate our growth in a very exciting way,” Stein added.

In a statement, Argentum managing partner Dan Raynor noted:

AdhereTech is one of the few companies that is successfully addressing the enormous problem of medication nonadherence, estimated by some analysts to result in over $300 billion in annual avoidable costs. Not only is AdhereTech achieving industry-leading returns for its pharmaceutical clients, but it is also providing them with important data about usage patterns that were previously unobtainable.

The New York City-based startup provides pharma-sponsored support programs to patients on specialty medications. Patients receive an AdhereTech smart pill bottle with their specialty medication. The bottles, which arrive ready to be used, are rechargeable and have six-plus months of battery life. Patients then get reminders via text message or phone call whenever they miss a dose.

The startup’s program offers personalized support for refills and health issues as well. When a patient needs extra help, the AdhereTech system notifies their pharmacy.

AdhereTech was founded in 2011. It launched its first product in 2013, and its first commercialized and scalable product in 2015, Stein said. Currently, its customers include pharmaceutical companies and specialty pharmacies.

Looking ahead, Stein said the company’s goal is “to allow as many patients as possible to benefit from our technology.”

Back in 2016, a panel of four judges chose AdhereTech as the winner of MedCity’s patient engagement startup contest.

Photo: AdhereTech