- GoodRx Holdings Inc (NASDAQ: GDRX) recently announced it is buying vitaCare for $150 million. These are the details.
GoodRx (Nasdaq: GDRX) – a leading consumer-focused digital healthcare platform – recently announced it has entered into a definitive agreement to acquire vitaCare Prescription Services from TherapeuticsMD. VitaCare is known as a technology and services platform that helps patients navigate key access and adherence barriers for brand medications.
Specifically, vitaCare helps patients understand coverage and identify available savings opportunities while facilitating communications between providers and payors. And the platform also offers a seamless path for filling a prescription, primarily through its network of third-party pharmacies. This acquisition will enable GoodRx to help more patients receive their prescriptions in an efficient, affordable, and transparent manner, and stay on their prescribed therapies as long as appropriate.
Only about half of the 500 million brand prescriptions written each year are actually filled, based on IQVIA, FDA, and DrFirst data. And 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 U.S. last year, CoverMyMeds found 29% of patients experienced a delay in getting their medication because of insurance processes and provider communication delays. And with vitaCare, GoodRx believes it will have more tools to help facilitate 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 had invested in bringing affordable brand drug solutions directly to consumers. And through the company’s 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. Through GoodRx Health, the company’s 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.
Deal Terms
GoodRx agreed to buy vitaCare for $150 million in cash with an additional $7 million consideration contingent upon vitaCare’s financial performance through 2023. And the deal is expected to close in mid-2022, subject to the satisfaction of customary closing conditions. The company expects the transaction to contribute under 1% to our overall revenue and reduce the adjusted EBITDA margin by approximately 2% in 2022, assuming the transaction closes mid-year. And they expect the business to grow in revenue and profitability in future years, but not materially impact our long-term guidance.
KEY QUOTES:
“Over the past decade, GoodRx has helped millions of Americans afford generic medications, but brand medications remain too expensive for too many people. Pharma manufacturers want to help patients find affordable options but too many consumers still face affordability challenges or complex reimbursement processes. With vitaCare, we aim to grow our reach and provide new tools for both consumers and providers to help ensure that more patients can access relevant savings programs and navigate prior authorization requirements. We’re excited about the potential to help patients from the point of prescribing through their ongoing refills to ensure they can stay healthy.”
— Doug Hirsch, co-CEO and co-founder of GoodRx
“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. Consumers come to vitaCare 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.”
— John Milligan, CEO at vitaCare Prescription Services
