GoodRx a leading consumer-focused digital healthcare platform, announced that it had reached a definitive agreement to buy TherapeuticsMD's vitaCare Prescription Services. VitaCare is a technology and services platform that assists patients in overcoming primary barriers to brand medicine access and adherence. vitaCare, in particular, helps patients understand coverage, identify savings opportunities, and facilitate communication between physicians and payors. In addition, thanks to its extensive network of third-party pharmacies, the website also makes it easy to fill a prescription. With this acquisition, GoodRx will be able to assist more patients in receiving their prescriptions in a timely, cost-effective, and transparent manner, as well as staying on their prescribed medications for as long as they need to.
According to IQVIA, FDA, and DrFirst data, hardly half of the 500 million brand prescriptions generated yearly are completed. One crucial factor is that affordability is a significant barrier to access for many people, resulting in a lack of medication adherence among patients. According to CoverMyMeds, out of all the prescriptions filled in the United States last year, 29 percent of patients were delayed in receiving their medication due to insurance processing and physician communication delays. GoodRx thinks that vitaCare will have more tools to help streamline the prescription process from beginning to end, ensuring that patients have a clear path to accessing and affording the brand-name medications they require. Furthermore, the acquisition is expected to boost GoodRx's rapidly developing, high-margin Pharma Manufacturer Solutions products, which include drug knowledge, access, and adherence as well as unique capabilities.
“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 consumers and providers to help ensure that more patients can access relevant savings programs and navigate prior authorization requirements. In addition, 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,” said John Milligan, CEO at vitaCare Prescription Services. “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.”
GoodRx has made a significant investment in offering low-cost brand-name drug solutions to consumers. GoodRx works with pharmaceutical manufacturers through our Pharma Manufacturer Solutions business to increase patient awareness of savings programs and prescriber access to these programs directly on our site, improving patient access to these programs and increasing adherence to the brand medications patients need to stay healthy. GoodRx offers a platform for manufacturers to engage big, high-intent audiences contextually appropriate to their products through GoodRx Health, our online health information portal. GoodRx now wants to expand its solutions for pharmaceutical producers with vitaCare to help patients gain access and adhere to their medications.
GoodRx has agreed to pay $150 million in cash for vitaCare, with an extra $7 million based on the company's financial success until 2023. The acquisition is scheduled to close in mid-2022, assuming all usual closing conditions are met. In 2022, taking the acquisition closes in the middle of the year, we project the transaction to add less than 1% to overall revenue and cut the adjusted EBITDA margin by about 2%. In future years, we expect the business to expand in revenue and profitability, but this will not substantially impact our long-term outlook.