Andel Raises $4.5M to Solve the Brand-Name Drug Affordability Crisis Through Cooperative Buying Power

"Andel is building a membership platform that sidesteps the traditional pharmacy benefit manager infrastructure, aggregating employee demand across multiple employers to negotiate directly with manufacturers. The cooperative model allows employers to contribute subsidies at whatever level fits their budget while members pay a small monthly fee for access, creating a benefit structure that doesn't require employers to absorb the full cost of coverage."

"The promise of breakthrough pharmaceuticals has created an unexpected crisis in employer benefits. As GLP-1 medications demonstrate remarkable efficacy for weight management and chronic disease prevention, their costs have become untenable for most businesses. The numbers tell the story: U.S. prescription drug spending hit $805.9B in 2024, climbing 10.2% year-over-year, while two-thirds of employers have dropped GLP-1 coverage entirely rather than face projected healthcare cost increases of 10% in 2026."

"Andel is a revolution in drug affordability - a cooperative employee platform that unlocks access to GLP-1s and other brand-name medications. We solve this problem by leveraging the combined buying power of our members to go directly to manufacturers for better prices and a guaranteed supply. Then, employers add a subsidy of their choosing to further reduce costs to members."

GLP-1 medications deliver strong results for weight management and chronic disease prevention but have driven prescription drug spending to unsustainable levels for many employers. U.S. prescription drug spending reached $805.9B in 2024, rising 10.2% year-over-year, and projected cost increases led two-thirds of employers to drop GLP-1 coverage. Andel offers a cooperative membership platform that bypasses pharmacy benefit managers, aggregates demand across employers, negotiates directly with manufacturers for lower prices and guaranteed supply, and lets employers provide optional subsidies while members pay a small monthly fee. Andel raised $4.5M in seed funding from investors including Lightbank and Seedcamp.

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