Cabinet Health was founded in 2018 with the aim of providing more sustainable packaging for the pharmaceutical industry. In its latest funding round, it managed to raise $17m (€16m), which was led by Global Impact Fund, as well as Natureza and Unreasonable Group.
The funding adds to previous financing rounds, which has seen Cabinet generate $23.6m in funds.
According to the company, its plan includes four aims: create a more sustainable medicine system, build an ethical and transparent supply chain, remove more plastic than it produces, and neutralize unnecessary carbon emissions.
In terms of how it will achieve the goals, Cabinet has developed compostable materials for over-the-counter medicines, uses a transparent supply chain, offsets its own plastic usage, and ensures its shipping is carbon neutral.
The end product of the company is focused on the first of these actions, by replacing plastic bottles with sealed bags that are compostable and by producing refillable glass medicine bottles. Cabinet also sells the common OTC products that are commonly purchased in plastic packaging, such as pain relief and allergy medication, delivered in its own packaging.
According to Cabinet, by switching to its refillable packaging system, customers can eliminate up to one pound (453g) of plastic annually.
Cabinet also draws a line between the use of single-use plastics and the resulting microplastics that are produced; the company’s states that 194bn plastic medicine bottles are produced every year, contributing to the issue.
Russell Gong, co-founder of Cabinet Health, said, “We know that 97% of single-use plastics end up in our oceans, landfills, and eventually, our bodies as microplastics. The plastic waste crisis is a public health crisis.”
The funding received in its latest raise will be used to expand into new categories, including prescription medicine and retail channels. Cabinet drew investor interest after average 110% growth year-over-year with its OTC products, the company stated.
At a recent industry event, sustainability and sustainable business practice was a major talking point, with a growing importance being placed on companies having an effective Environmental, Social and Governance (ESG) program in place.
The movement towards greater sustainability in packaging is also growing across the industry. Last year, Neopac’s MMB mono-material tubes, which are designed to be recyclable, won a design award and were released onto the market at the beginning of this year.