Originally published by Mobi Health News on March 7, 2022
Medication price transparency tool GoodRx is scooping up tech-backed pharmacy platform vitaCare for $150 million in cash, with an additional $7 million contingent based on performance.
Currently owned by TherapeuticsMD, vitaCare was designed to give patients information about their benefits and medication 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 pitching this M&A as a way to help extend its reach and tackle issues surrounding medication adherence. The company also plans to use vitaCare to help expand its services for pharma manufacturers.
"Over the past decade, GoodRx has helped millions of Americans afford generic medications, but brand medications remain too expensive for too many people," Doug Hirsch, co-CEO and cofounder of GoodRx, said 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," he continued. "We're excited about the potential to help patients from the point of prescribing through their ongoing refills to ensure they can stay healthy.”
WHY IT MATTERS
As the digital health industry continues to expand, so does its number of M&As. In fact, in 2021 Rock Health estimates there were, on average, 23 digital health exits through M&A each month.
The vitaCare deal is aimed at building out GoodRx's digital pharmacy business.
"Upon joining the GoodRx team, we hope to expand our network of pharmaceutical manufacturers and put even more therapies within reach for consumers," John Milligan, CEO at vitaCare Prescription Services, said in a statement.
THE LARGER TREND
This isn't GoodRx's first acquisition. In 2021, the company purchased RxSaver, which gives users discounts on prescription medications, for $50 million. The Santa Monica, Calif.-based company also purchased health education company HealthiNation and telehealth company HeyDoctor. Following the acquisition of HeyDoctor, the company rolled out a new virtual health offering.