What You Should Know:
– GoodRx announced that it will acquire vitaCare Prescription Services, a tech-enabled pharmacy services platform that expands GoodRx’s offering to pharma manufacturers while improving patient access and adherence to affordable brand drugs.
– Over 500 million brand prescriptions are written every year, yet only half are ever filled. This acquisition will give GoodRx the tools we need to help address this problem and facilitate the brand prescription process from start to finish. In addition, it will also strengthen the fastest-growing piece of our business – Pharma Manufacturer Solutions – which grew 4x YOY in Q4. And it allows us to expand our offering to HCPs.
GoodRx expands offering to pharmaceutical manufacturers while helping to improve patient access
Only half of the 500 million brand prescriptions written each year are actually filled, based on IQVIA, FDA and DrFirst data. One important reason is that affordability is a huge barrier to access for many people, leading to a lack of medication adherence among patients. Of all of the prescriptions filled in the US last year, CoverMyMeds found 29% of patients experienced a delay in getting their medication because of insurance processes and provider communication delays. With vitaCare, GoodRx believes it will have more tools to help ease the prescription process from start to finish, ensuring patients have a clear path to access and afford the brand-name therapies they need. In addition, the acquisition is expected to further strengthen GoodRx’s set of rapidly growing, high-margin Pharma Manufacturer Solutions offerings which span medication awareness, access, and adherence with unique capabilities.
GoodRx has invested in bringing affordable brand drug solutions directly to consumers. Through its Pharma Manufacturer Solutions business, GoodRx works with pharmaceutical manufacturers to boost awareness of savings programs among patients and prescribers directly on our site, improving patient access to these programs and increasing adherence to the brand medications patients need to stay healthy.
With GoodRx Health, our online health information site, GoodRx offers a platform where manufacturers can reach large, high-intent audiences contextually relevant to their products. Now, with vitaCare, GoodRx plans to expand its solutions for pharmaceutical manufacturers to help increase access and adherence for patients.
GoodRx has agreed to acquire vitaCare for $ 150 million in cash, with an additional $ 7 million consideration contingent upon vitaCare’s financial performance through 2023. The transaction is expected to close in mid-2022, subject to the satisfaction of customary closing conditions. The acquisition will contribute under 1% to our overall revenue and reduce adjusted EBITDA margin by approximately 2% in 2022, assuming the transaction closes mid-year.
“We couldn’t be more excited to join GoodRx and be part of a team that is working to put affordable healthcare within reach for everyone,” said John Milligan, CEO at vitaCare Prescription Services. “Consumers come to life looking for a seamless, patient-first experience that will help them get the brand medications they are prescribed. Upon joining the GoodRx team, we hope to expand our network of pharmaceutical manufacturers and put even more therapies within reach for consumers. ”