SmithRx CEO Jake Friends argues that new PBM transparency laws fail. The proof is that the stocks of the large, regulated PBMs rose after the legislation passed, as markets understood that profit pools would simply shift and the laws would increase barriers to entry for competitors.
SmithRx's CEO models his hiring philosophy on his time in the Marine Corps, seeking people who "fight because of the guy next to you." The goal is to build a team with a shared sense of purpose and mission, where individuals are mutually supportive across all fronts, creating organizational resilience.
By initially focusing on the underserved SMB market, SmithRx built a highly repeatable and scalable platform. The operational rigor developed from handling thousands of smaller clients was the key to later "crossing the chasm" and successfully serving large, demanding enterprise customers.
Legacy PBMs run on rigid, antiquated systems like COBOL, inhibiting their ability to find dynamic cost-saving pathways. SmithRx's modern, distributed architecture connects to new low-cost options (like Mark Cuban Cost Plus) and leverages AI to lower its own service costs, creating a dual advantage.
SmithRx CEO Jake Friends, a Marine, was diagnosed with bone cancer before a deployment to Fallujah. After surgery, he felt a duty to his unit, booking his own transport to Kuwait and hitchhiking on aircraft to rejoin them in the fight. This extreme sense of service and resilience is foundational to his entrepreneurial journey.
When interviewing, SmithRx CEO Jake Friends asks candidates to tell a story about "why"—personal or professional. He looks for their ability to articulate the contemplated pieces and inputs to their decisions, and to be precise and proud of their narrative. This reveals depth of thought beyond a resume summary.