GoodRx acquires technology-enabled pharmacy platform vitaCare for $150 million

Drug pricing transparency tool GoodRx is raising technology-enabled pharmacy platform vitaCare for $150 million in cash, with an additional $7 million stipend based on performance.

Currently owned by TherapeuticsMD, vitaCare is designed to provide patients with 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 have their prescriptions filled at a network of external pharmacies.

The deal is expected to close in mid-2022.

GoodRx presents this M&A as a way to expand its reach and address compliance issues. The company also plans to use vitaCare to expand its services for pharmaceutical manufacturers.

“Over the past decade GoodRx has helped millions of Americans afford generic drugs, but branded drugs remain too expensive for too many,” said Doug Hirsch, co-CEO and co-founder of GoodRx. “Pharma manufacturers want to help patients find affordable options, but too many are becoming consumers. still face affordability issues or complex refund processes.

“With vitaCare, we want to expand our reach and provide new tools for both consumers and healthcare providers to ensure more patients have access to relevant savings programs and navigate through pre-consent requirements,” he continued. “We are excited about the potential to help patients from prescribing through their ongoing refills to ensure they can stay healthy.”

WHY IT MATTER

As the digital health industry continues to grow, so do the number of mergers and acquisitions. In fact, in 2021 Rock Health estimates that there were an average of 23 digital health exits each month through mergers and acquisitions.

The vitaCare deal aims to build out GoodRx’s digital pharmacy business.

“With our joining the GoodRx team, we hope to expand our network of pharmaceutical manufacturers and bring even more therapies within reach of consumers,” said John Milligan, CEO of vitaCare Prescription Services, in a statement.

THE BIGGER TREND

This is not the first acquisition of GoodRx. In 2021, the company bought RxSaver, which gives users discounts on prescription drugs, for $50 million. The Santa Monica, California-based company also bought health education company HealthiNation and telehealth company HeyDoctor. Following the acquisition of HeyDoctor, the company has rolled out a new virtual health offering.

GoodRx was founded in 2011 and debuted on the public markets in 2020. The stock recently collapsed after failing its fourth-quarter earnings estimates.