GoodRx is expanding into consumer education with the acquisition of health video company HealthiNation.
GoodRx, an online platform that offers coupons for discounts on prescription drugs, is buying the company for $75 million in cash, according to the latest 10-K document filed with the Securities and Exchange Commission (SEC).
The company expects to fully fund the proposed acquisition with available cash on hand but may also opt to fund a portion or all of the consideration through borrowings under existing lines of credit, according to the SEC filing.
The deal is expected to close by the end of the second quarter.
GoodRx went public in September, raising $1.1 billion in its initial public offering.
HealthiNation offers a comprehensive library of thousands of premium videos on a wide range of health topics that provide a platform for pharmaceutical manufacturers to reach targeted audiences and high-intent consumers, according to GoodRx.
The acquisition will enable GoodRx to provide consumers with high-quality health content and information to consumers and expand its services to pharmaceutical manufacturers.
HealthiNation's capabilities will provide "highly targeted health content for pharmaceutical manufacturers to reach consumers and that aligns with our desire to grow that part of our business," Justin Fengler, senior vice president of corporate strategy and business development at GoodRx, told Fierce Healthcare.
The San Monica-based company started in 2011 with a price comparison tool for prescriptions, offering consumers free access to lower prices on their medication. With the acquisition of telemedicine company HeyDoctor in September 2019, GoodRx expanded its services to include virtual care.
GoodRx also recently launched a new program to give GoodRx subscription holders discounts on virtual doctors' visits and free mail delivery via the GoodRx app.
As part of its manufacturing solutions business, GoodRx works with manufacturers to deliver affordability solutions such as co-pay cards, patient assistance programs and other savings options directly to consumers. In turn, GoodRx provides manufacturers with a targeted and efficient way to connect their brands with millions of high-intent consumers. With the video library, editorial expertise and resources of HealthiNation, GoodRx will be able to provide manufacturers with new ways to reach large audiences contextually relevant to their drugs.
"If we're talking to Humira about our affordability solutions on that side of the house, we can now talk to them about how we can provide content to their users about how to deal with rheumatoid arthritis and we have dozens of videos on that," Fengler said.
“We are always looking for ways to accelerate our vision of being the leading consumer digital health platform,” said Doug Hirsch, co-CEO and co-founder of GoodRx, in a statement. “The acquisition of HealthiNation aligns with our effort to invest more in research and content to empower consumers, and propel even faster growth in our manufacturer solutions offering.”
HealthiNation's library of videos, which are created in partnership with a network of medical professionals and patient advocates, provide content on a broad scope of health topics, such as disease conditions, nutrition, wellness and lifestyle.
GoodRx's acquisition of HealthiNation also expands the company's reach into physicians' offices as the health video company has an extended distribution network which includes doctor’s offices, hospitals, Roku, Apple TV, iOS, Apple News, Amazon Fire tablets, and Android phones and tablets.
“Consumers and pharmaceutical manufacturers appreciate and trust our expert-created health videos because they are easy to understand and a safe platform for valuable health information and guidance. As part of the GoodRx team, we will be able to pair our videos with the company’s high-quality editorial content to deliver best-in-class information directly to millions of consumers across a growing range of subjects and topics," said Michael O’Donnell, CEO of HealthiNation, in a statement.