To curb health-care costs, an enterprising pair tackled one source of the pain: prescription drugs.
By Nichole L. Torres
Finding a solid niche in a huge marketplace was key to the success of SunRx Inc., a Cherry Hill, New Jersey, prescription benefits administration company. Not only does the company provide prescription drug plans to businesses nationwide, but it does so on a transparent fee basis--every client knows exactly where his or her money goes. "We created a niche company that operates fundamentally on full disclosure," says Gerard Ferro, 47, who co-founded the business with Christine Serenelli, 41. "We report to our clients what our administrative fees are...and, as a result, [they] save on average anywhere from 12 percent to 18 percent on their pharmacy program."
In the beginning, persuading clients of the savings was a challenge, but once Serenelli and Ferro secured their first deals, new business came much easier. Investing in a technology upgrade allowed the company to expand its capacity to serve its growing roster of clients. "You've got to understand your company's limitations and capacity and be prepared to invest in the infrastructure," says Ferro, adding that sales skyrocketed from $120,000 in 2002 to a whopping $29.4 million in 2006. "We're ready to go to the moon now."