PurpleLab Raises $40M From Primus Capital to Access and Interpret RWD in Healthcare

PurpleLab, Inc. recently announced a $40 million Series B funding round led by Primus Capital, which joins existing investor Edison Partners. TripleTree served as the exclusive financial advisor to PurpleLab for this transaction. The investment highlights PurpleLab’s growing role in simplifying the access to and interpretation of Real-World Data (RWD) across the healthcare continuum.

What Is Big Data and How Does It Influence Healthcare

The term “big data” describes huge complex volumes of ever-increasing information processed through digital technologies for use in several fields of endeavor. The rapid rise of Internet technology in the 21st century has brought the ability to generate, store, and analyze enormous volumes of data within a short period.

There are over 35 billion devices connected to the Internet today, with that figure expected to rise to over 75 billion by 2025. 

Big data has found use in government, banking and finance, technology, fraud detection, social media analytics, agriculture, call center analytics, marketing, telecommunications, and healthcare.

Global big data in the healthcare market is expected to reach $34.27 billion by 2022 at a CAGR of 22.07%. Globally, the big data analytics segment is expected to be worth more than $68.03 billion by 2024, driven largely by continued North American investments in electronic health records, practice management tools, and workforce management solutions.

Health data, if properly analyzed, can help improve public health. By collecting and analyzing data, healthcare organizations can use their findings to create public health awareness campaigns and work toward healthier communities. Health literacy is an important issue and it’s crucial for organizations to have accurate, up-to-date information that is easy for people to understand.

The New Funding Will Help PurpleLab Continue Its Growth

Founded in 2017, PurpleLab has a strong pedigree in proprietary methodologies for data organization, cleansing, management, and governance to solve key challenges across the healthcare industry. PurpleLab continues to be recognized as a leading expert in the RWD space and was recently awarded Qualified Entity certification status by The Centers for Medicare and Medicaid Services (CMS).

PurpleLab has experienced triple digit growth for four consecutive years. This supplementary funding will enable the company to keep on growing and accelerate investments in new data assets, product development and human capital. 

Stakeholders across the healthcare industry are using PurpleLab’s RWD infrastructure to reduce time to insights while improving cost efficiencies.

“We’re laser focused on creating infrastructure and tools to assist our clients in converting real-world data into real-world evidence and this investment will accelerate the rate of adoption, conversion and ultimate return on their investment,” commented Mark Brosso, CEO and Founder of PurpleLab. “Understanding comparative performance of various treatments for every condition is becoming easier through technologies such as deidentification via tokenization and is being further driven by legislative mandates such as the 21st Century Cures Act. In a world with increased access to RWD, the biggest challenge lies in the ability to readily interpret the data. PurpleLab’s HealthNexus™ platform was designed to solve this problem and we are thrilled that Primus shares our vision.”

The Main Investors Are Happy to Contribute

The leading investors are as content to be part of this endeavor as PurpleLab is. Phil Molner, Managing Partner of Primus Capital, stated: “Through its HealthNexus platform, PurpleLab has successfully organized and deployed real-world data to bring differentiated yet rapid commercial and clinical insights to the life sciences industry. We are excited to work with an industry leader like Mark Brosso and the rest of the PurpleLab team to continue to build upon the company’s success to date.”

“PurpleLab has established itself as an industry leader through a differentiated data and analytics platform along with rapid, consistent growth since our initial investment in 2020,” said Gregg Michaelson, General Partner, Edison Partners. “We are thrilled to continue supporting Mark and the entire PurpleLab team through this next phase of growth.”

About PurpleLab

PurpleLab is a health tech company with a mission to spur value-driven innovation across the healthcare continuum. HealthNexus™, the company’s no-code analytics platform empowers life science, payers, providers, and other healthcare stakeholders to develop real-world evidence (RWE) that novel therapeutics or clinical strategies are performing and are leading to savings in lives and costs. Following its Series A financing in July of 2019, the company raised a Series B financing of $40M on July 27, 2022. 

About Primus Capital

Primus Capital is a growth-oriented private equity firm focused on investing in leading healthcare, software, and technology-enabled services companies. Primus partners with exceptional management teams to accelerate growth, improve operating performance, and increase the value of the companies in which they invest. Primus pursues buyouts, control and minority recapitalizations, secondary share purchases, and expansion financings; this flexible approach enables Primus to engage with business owners and design tailored investment structures to meet the particular needs of the transaction. 

About Edison Partners

For 36 years, Edison Partners has been helping CEOs and their executive teams grow and scale their companies. The firm’s investment team brings more than 275 years of combined investing and operating experience to each investment. Through a unique combination of growth capital and the Edison Edge platform, consisting of operating centers of excellence, executive education programs, and the Edison Director Network, Edison employs a truly integrated approach to accelerating growth and creating value for businesses. With experts in enterprise solutions, financial technology and healthcare IT, Edison targets high-growth companies located outside Silicon Valley with $10 million to $30 million in revenue. Investments also include buyouts, recapitalizations, spinouts, and secondary stock purchases. Edison’s active portfolio has created aggregated market value exceeding $10 billion. Edison Partners manages $1.6 billion in assets.