Long-term care pharmacy vendor gets venture capital boost

Nashville-based New Day Pharmacy has gained an infusion of $10.2 million in growth capital from a syndicate of institutional investors led by Council Ventures.

Company president Dick Wager said the investment would allow New Day to offer its virtual "in-house pharmacy" services to any long-term care facility in the United States. New Day provides technology that allows nurses to dispense medications to patients within minutes - a rarity in long-term care. The company currently serves long-term care facilities in Florida, Indiana, Ohio and Tennessee.

"Council Ventures officials have already contributed an enormous amount of resources and experience to help take New Day to a new level," Wager said. He called the deal a "groundbreaking project that vastly improves the way long-term care patients receive their medications."

Co-investors in New Day include the healthcare services venture capital firm Clayton Associates, Council operating partners James M. Usdan and Linwood A. "Chip" Lacy Jr., and a Fortune 500 company strategic investor affiliated with one of Council Venture's limited partners.

Usdan will lead New Day Pharmacy as chairman and CEO. Dennis C. Bottorff, Council's managing general partner, and its operating partner, Lacy; and Matt King, Clayton Associates' managing director; have joined New Day's board.

New Day Pharmacy's "in-house pharmacy" features a virtual information data bank, a paperless admissions process, a time-sequenced packaging system, long-distance delivery of medications, and on-site medication dispensing units.