GoodRx seizes vitaCare technology-backed pharma platform for $150 million
Drug price transparency tool GoodRx picks up vitaCare technology-backed pharma platform for $150 million in cash, with an additional $7 million contingent based on performance.
Currently owned by TherapeuticMD, vitaCare was designed to give patients information about their benefits and drug coverage options. It also has a tool that helps payers and providers communicate. Patients can use the tool to get their prescriptions filled at a network of third-party pharmacies.
The deal is expected to close in mid-2022.
GoodRx is touting this merger and acquisition as a way to help expand its reach and address medication adherence issues. The company also plans to use vitaCare to help expand its services to pharmaceutical manufacturers.
“During the last decade, GoodRx has helped millions of Americans get generic drugs, but brand name drugs are still too expensive for too many people,” Doug Hirsch, co-CEO and co-founder of GoodRx, said in a statement. pharmaceuticals want to help patients find affordable options, but too many consumers still face affordability issues or complex reimbursement processes.
“With vitaCare, we aim to expand our reach and provide new tools for consumers and providers to help ensure that more patients can access relevant savings programs and navigate authorization requirements. beforehand,” he continued. “We are excited about the potential to help patients from the time of prescription through their ongoing refills to ensure they can stay healthy.”
WHY IS IT IMPORTANT
As the digital health industry continues to grow, the number of mergers and acquisitions is also increasing. Indeed, in 2021 Rock Health estimates that there were, on average, 23 digital health M&A exits each month.
The vitaCare deal aims to grow GoodRx’s digital pharmacy business.
“By joining the GoodRx team, we hope to expand our network of pharmaceutical manufacturers and bring even more therapies to consumers,” John Milligan, CEO of vitaCare Prescription Services, said in a statement.
THE GREAT TREND
This isn’t GoodRx’s first acquisition. In 2021, the company purchased RxSaver, which offers users discounts on prescription drugs, for $50 million. The Santa Monica, Calif.-based company also bought health education company HealthiNation and telehealth company HeyDoctor. Following the acquisition of HeyDoctor, the company rolled out a new virtual health offering.
GoodRx was founded in 2011 and debuted on the public markets in 2020. Recently, its stock has fallen after missing its fourth-quarter earnings expectations.