Remedy worth transparency instrument GoodRx is scooping up tech-backed pharmacy platform vitaCare for $150 million in money, with a further $7 million contingent based mostly on efficiency.
At the moment owned by TherapeuticsMD, vitaCare was designed to present sufferers details about their advantages and drugs protection choices. It additionally has a instrument that helps payers and suppliers talk. Sufferers can use the instrument to get their prescriptions stuffed at a community of third-party pharmacies.
The deal is anticipated to shut in mid-2022.
GoodRx is pitching this M&A as a approach to assist lengthen its attain and sort out points surrounding treatment adherence. The corporate additionally plans to make use of vitaCare to assist develop its providers for pharma producers.
“Over the previous decade, GoodRx has helped thousands and thousands of People afford generic drugs, however model drugs stay too costly for too many individuals,” Doug Hirsch, co-CEO and cofounder of GoodRx, stated in a press release. “Pharma producers wish to assist sufferers discover reasonably priced choices, however too many customers nonetheless face affordability challenges or advanced reimbursement processes.
“With vitaCare, we purpose to develop our attain and supply new instruments for each customers and suppliers to assist make sure that extra sufferers can entry related financial savings applications and navigate prior authorization necessities,” he continued. “We’re excited concerning the potential to assist sufferers from the purpose of prescribing by their ongoing refills to make sure they will keep wholesome.”
WHY IT MATTERS
Because the digital well being business continues to develop, so does its variety of M&As. In truth, in 2021 Rock Well being estimates there have been, on common, 23 digital well being exits by M&A every month.
The vitaCare deal is aimed toward constructing out GoodRx’s digital pharmacy enterprise.
“Upon becoming a member of the GoodRx group, we hope to develop our community of pharmaceutical producers and put much more therapies inside attain for customers,” John Milligan, CEO at vitaCare Prescription Companies, stated in a press release.
THE LARGER TREND
This is not GoodRx’s first acquisition. In 2021, the corporate bought RxSaver, which offers customers reductions on prescription drugs, for $50 million. The Santa Monica, Calif.-based firm additionally bought well being training firm HealthiNation and telehealth firm HeyDoctor. Following the acquisition of HeyDoctor, the corporate rolled out a brand new digital well being providing.
GoodRx was based in 2011 and debuted on the public markets in 2020. Lately, its inventory has taken a tumble after lacking its This fall earnings expectations.
