GoodRx picks up vitaCare Prescription Services in $150M deal to expand pharmacy services platform

GoodRx is scooping up vitaCare Prescription Services from TherapeuticsMD to beef up its growing pharma manufacturer solutions business.

VitaCare is a technology and services platform designed to make the complex process of filling prescriptions simple, cost-effective and stress-free for patients. 

In recent months, the COVID-19 pandemic has highlighted the value of pharmaceutical companies being able to connect directly with patients, according to TherapeuticsMD in its latest earnings release. This in combination with the rise of interest and investment in other hub service and pharmacy services companies has driven outside interest in vitaCare both from pharmaceutical companies seeking to utilize vitaCare for their products and from potential partners or sponsors seeking to acquire a controlling interest in vitaCare.

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, according to the companies.

The transaction is expected to close in mid-2022.

GoodRx expects the deal to contribute under 1% to its overall revenue and reduce adjusted EBITDA margin by approximately 2% in 2022. The company expects the business to grow in revenue and profitability in future years but not materially impact its long-term guidance.

Drug discount company GoodRx offers an app that tracks prescription drug prices and offers coupons to get medication discounts. The company expanded its services to provide a telehealth platform, called GoodRx Care, that enables consumers to see a licensed physician for primary care services.

GoodRx’s coupon price API processes more than 200 billion pricing data points every day to provide consumers with access to lower prices on their medication. 

The startup charted $745 million in revenue in 2021, up 35% from 2020. The company closed the second quarter of 2021 with a user base of more than 7.5 million that includes both its monthly active users and its subscribers

The company also has been expanding into health content to provide answers to the most Googled questions about personal health. The company launched GoodRx Health as an online health resource that provides research-based, accessible health information on common health topics like diabetes and heart disease, according to GoodRx executives.

The addition of vitaCare will strengthen GoodRx's fastest-growing piece of its business—pharma manufacturer solutions, which is growing four times year over year in the fourth quarter. That business spans medication awareness, access and adherence with unique capabilities.

Further, it enables GoodRx to expand its offering to healthcare providers, according to the company. 

“Over the past decade, GoodRx has helped millions of Americans afford generic medications, but brand medications remain too expensive for too many people,” said Doug Hirsch, co-CEO and co-founder of GoodRx, in a statement. “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.”

Specifically, vitaCare helps patients understand coverage and identify available savings opportunities, and it facilitates communications between providers and payers. The platform also offers a seamless path for filling a prescription, primarily through its network of third-party pharmacies, according to the companies.

Only half of the 500 million brand prescriptions written each year are actually filled, based on IQVIA, FDA and DrFirst data. Affordability can be 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. The addition of vitaCare's capabilities gives GoodRx 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, company executives said.