- Hornby led HBOS to the brink of collapse during the financial crisis
- Pharmacy2U plans to use the funds to invest in its online dispensary
Delivery: Pharmacy2U’s Andy Hornby
An online pharmacy backed by former banker Andy Hornby has raised £40million to fund its rapid growth.
Hornby, who led HBOS to the brink of collapse during the financial crisis, is chairman of Pharmacy2U, which delivers repeat NHS prescriptions to patients’ homes.
Pharmacy2U plans to use the funds to invest in its online dispensary, which dispatches more than 300,000 medicines each month.
The firm says managing repeat prescriptions online could save the NHS more than £300million a year.
Hornby has invested in the company alongside CEO Mark Livingstone, the co-founder of film rental company LoveFilm.
Livingstone said Pharmacy2U’s online prescription service relieves GPs of ‘time and stress’.
Pharmacy2U registered more than 25,000 new patients last month. Revenues rose 52 per cent to £25.8million over the year to March 2017. Pre-tax losses increased from £2.9million to £20.6million due to £14.3million costs from acquiring rival Chemist Direct.
The private company hopes to exceed revenue of £100million in the next year. It also runs an online doctor consultation service and sells health products over the internet.
The investment was led by private equity firm G Square Capital, with further backing from venture capital fund Atomico and existing investor the British Growth Fund.
Hornby ran chemist Alliance Boots after leaving HBOS but quit after less than two years with a £2.4million pay packet. He joined Pharmacy2U as non-executive chairman in 2012.
He is also set to become joint chief operating officer of offshore betting firm GVC Holdings when it completes its £4billion takeover of Ladbrokes Coral this week.
Hornby will own shares worth up to £10million in the merged company and is expected to earn £1million a year for overseeing its 3,500 betting shops.