GoodRx Holdings | research notes

Introducing GoodRx Holdings: A Revolution in Prescription Savings

GoodRx Holdings, Inc. is a leading digital healthcare company focused on making prescription drugs more affordable and accessible. Through its GoodRx digital platform, the company empowers consumers to compare drug prices across pharmacies, find discounts and coupons, and save money on their medications.

Mission and Impact

GoodRx's mission is to make healthcare affordable for everyone. By providing transparent pricing information and discounts, the company helps patients navigate the complex pharmacy ecosystem and reduce the financial burden of prescription drugs. Since its inception, GoodRx has helped over 30 million Americans save over $25 billion on their prescriptions.

Digital Platform

The GoodRx digital platform is a comprehensive solution for prescription savings. Users can:

• Compare drug prices at over 70,000 pharmacies nationwide
• Find and download discounts and coupons for generic and brand-name medications
• Receive reminders to refill prescriptions and track medication history
• Connect with GoodRx's licensed pharmacists for personalized support

Key Features

• Price Transparency: GoodRx provides real-time pricing information for over 100,000 medications, ensuring that consumers can make informed choices about their prescription expenses.
• Discounts and Coupons: The platform offers a wide range of discounts and coupons, allowing users to save hundreds of dollars on their prescriptions.
• Personalized Support: GoodRx's licensed pharmacists are available to answer questions, provide guidance, and ensure the safe and effective use of medications.
• Mobile Accessibility: The GoodRx app is available for iOS and Android devices, providing users with convenient access to prescription savings on the go.

Business Model

GoodRx generates revenue through partnerships with pharmacies. When a user fills a prescription using a GoodRx discount, the company receives a referral fee from the pharmacy. This business model has enabled GoodRx to keep its services free for consumers.

Financial Performance

GoodRx has experienced rapid growth in recent years. In 2022, the company reported revenue of over $2 billion and a net income of over $500 million. The company's strong financial performance reflects the increasing demand for affordable healthcare solutions.

Future Outlook

GoodRx is well-positioned for continued growth in the digital healthcare market. The company's commitment to innovation and its focus on improving healthcare affordability will likely drive its success in the years to come. As the cost of prescription drugs continues to rise, GoodRx's platform will become increasingly valuable to consumers seeking to save money on their medications.

GoodRx Holdings Business Model

GoodRx is a digital healthcare company that provides prescription drug discounts to consumers. Its primary revenue streams include:

• Subscription fees: GoodRx offers a premium membership service called GoodRx Gold that provides additional savings and perks.
• Transaction fees: GoodRx earns a commission on each prescription filled through its platform.
• Advertising revenue: GoodRx generates revenue from advertisements displayed on its website and app.

Advantages over Competitors

GoodRx offers several advantages over its competitors:

• Transparency and Simplicity: GoodRx provides consumers with clear and easy-to-understand drug prices. Its comparison tool allows users to find the most affordable options.
• Independent and Unbiased: GoodRx is not affiliated with any pharmacy or insurance company, so it offers unbiased information and discounts.
• Wide Reach: GoodRx has partnered with over 60,000 pharmacies across the US, giving consumers access to discounts at most major retailers.
• Consumer-centric: GoodRx focuses on helping consumers save money on their prescription drugs. Its user-friendly platform and customer support make the process seamless.
• Personalized Savings: GoodRx offers personalized coupons and alerts based on a user's specific prescription needs. This helps consumers maximize their savings.

Additional Advantages

• Cost-effective: GoodRx provides consumers with significant savings on their prescriptions, which can lead to increased medication adherence and improved health outcomes.
• Time-saving: GoodRx's platform allows consumers to easily compare prices and find the best deals, saving them time and hassle.
• Data Insights: GoodRx collects data on drug prices, utilization, and consumer behavior, which it uses to improve its services and provide valuable insights to the healthcare industry.
• Expansion into Other Healthcare Services: GoodRx is expanding its services to include telemedicine, mental health care, and other healthcare-related products and services.

Outlook of GoodRx Holdings

Financial Performance:

• Strong financial performance with revenue and earnings growth in recent quarters.
• Revenue driven by increased prescription volume and higher average revenue per prescription (ARPP).
• Positive EBITDA and net income margins.

Market Positioning:

• Leading online prescription discount platform in the US.
• Offers discounts on generic and brand-name medications.
• Partnerships with over 70,000 pharmacies nationwide.
• Strong brand recognition and high customer satisfaction.

Growth Opportunities:

• Expanding into adjacent markets, such as over-the-counter medications and telehealth.
• Acquiring complementary companies to enhance offerings.
• International expansion into new markets.

Competitive Landscape:

• Facing competition from other prescription discount platforms, such as SingleCare and Blink Health.
• Pharmaceutical companies seeking to reduce discounts on generic medications.
• Changes in healthcare regulations could impact the industry.

Industry Trends:

• Rising healthcare costs driving demand for prescription discounts.
• Increased adoption of telemedicine and online pharmacy services.
• Focus on affordability and value in healthcare.

Potential Risks:

• Regulatory changes that could limit discounts or competition.
• Dependence on partnerships with pharmacies.
• Economic downturn or changes in prescription trends could impact revenue.

Valuation:

• Traded publicly on the NASDAQ under the ticker symbol "GDRX".
• Market capitalization of approximately $5 billion as of February 2023.
• Price-to-sales (P/S) ratio in line with industry peers.

Analyst Consensus:

• Majority of analysts have a "Buy" or "Hold" rating on the stock.
• Target price estimates range from $30 to $50 per share.

Overall:

GoodRx Holdings is a well-positioned company in the prescription discount market with a strong financial track record and growth opportunities. While it faces some competitive and regulatory risks, the outlook for the company remains positive due to the growing demand for affordable healthcare solutions.

Similar Companies to GoodRx Holdings

1. SingleCare

• Website: https://www.singlecare.com
• Review: SingleCare offers a similar platform as GoodRx, providing discount coupons on prescription medications. It is known for its user-friendly interface and partnerships with major pharmacies nationwide.

2. Blink Health

• Website: https://blinkhealth.com
• Review: Blink Health focuses on providing affordable prices for generic medications through its membership program. It offers transparent pricing and the ability to order medications online or via the app.

3. HeyDoctor

• Website: https://heydoctor.com
• Review: HeyDoctor combines a prescription discount card with telemedicine services. Customers can save on medications while also accessing online doctor consultations and health advice.

4. Inside Rx

• Website: https://www.insiderx.com
• Review: Inside Rx is a prescription discount program backed by Express Scripts, one of the largest pharmacy benefit managers. It offers a wide network of participating pharmacies and discounts on brand-name and generic medications.

5. RxSaver

• Website: https://www.rxsaver.com
• Review: RxSaver provides prescription discounts through its website and mobile app. It features a simple search tool and allows customers to compare prices from different pharmacies.

Why Customers May Like These Companies

• Convenient and Affordable: All of these companies offer convenient ways to save money on prescription medications.
• Wide Network of Pharmacies: They have partnerships with major pharmacies, ensuring wide accessibility.
• Easy to Use: Their platforms are user-friendly and accessible from anywhere with an internet connection.
• Additional Services: Some companies offer additional services such as telemedicine or health advice to enhance the customer experience.
• Trustworthy: These companies have established track records and are backed by reputable healthcare organizations.

2011:

• GoodRx was founded by Doug Hirsch, Trevor Bezdek, and Scott Marlette in Santa Monica, California.
• Launched its website to provide free and discounted medication to users.

2012:

• Partnered with Walgreens, CVS, and other major pharmacies to offer discounted medications through their website.

2015:

• Raised $15 million in Series B funding.
• Launched its mobile app, making it easier for users to access discounts and coupons.

2016:

• Grew its user base to over 10 million active users.
• Acquired GoodPharma, a prescription drug discount card provider.

2017:

• Raised $50 million in Series C funding.
• Launched its RxSaver program, which allowed users to purchase medications at discounted prices directly through GoodRx.

2018:

• Expanded its partnership with CVS Health to offer GoodRx discounts at all CVS pharmacies.
• Acquired InsideRx, a competitor in the prescription drug discount space.

2019:

• Raised $130 million in Series D funding.
• Launched GoodRx Care, a program that provided access to discounted healthcare services.

2020:

• Filed for an initial public offering (IPO) under the ticker symbol "GDRX".
• Raised $1.18 billion in its IPO, valuing the company at over $12 billion.
• Acquired RxSaver, the prescription drug discount card provider it originally launched in 2017.

2021:

• Grew its user base to over 30 million active users.
• Expanded into Canada by acquiring BestRx, a leading Canadian prescription drug discount provider.
• Launched GoodRx Insurance, a health insurance marketplace aimed at providing affordable health plans to consumers.

2022:

• Announced a partnership with Amazon to offer GoodRx discounts on eligible prescriptions through Amazon Pharmacy.
• Acquired SingleCare, another major competitor in the prescription drug discount market.
• Reached a market capitalization of over $20 billion, making it one of the largest healthcare technology companies in the world.

2020

• March: GoodRx announces plans to go public through a SPAC merger with Dr. Reddy's Laboratories.
• October: GoodRx completes its SPAC merger with Dr. Reddy's Laboratories and begins trading on the Nasdaq under the ticker symbol GDRX.

2021

• January: GoodRx acquires HeyDoctor, a telehealth platform, for $150 million.
• May: GoodRx launches its GoodRx Telehealth service, which offers virtual doctor visits for $19 per visit.
• October: GoodRx reports its first profitable quarter as a public company.

2022

• March: GoodRx announces a partnership with HealthPartners, a non-profit health plan, to provide its members with access to GoodRx discounts.
• May: GoodRx launches GoodRx Care, a new service that offers personalized medication recommendations and savings.
• August: GoodRx announces plans to acquire DoseSpot, a prescription delivery platform, for $430 million.

Recent Timelines

• September 2022: GoodRx completes its acquisition of DoseSpot.
• October 2022: GoodRx reports its third quarter financial results, showing continued growth in its core business.
• November 2022: GoodRx announces a new partnership with Walmart to offer its GoodRx discounts to Walmart customers.
• December 2022: GoodRx announces the launch of GoodRx Plus, a subscription service that offers additional savings and perks to members.

GoodRx: Empowering Patients with Prescription Savings

GoodRx Holdings is a revolutionary healthcare company that is making a tangible difference in the lives of millions of Americans. Its mission to make healthcare more affordable and accessible is truly inspiring.

Unrivaled Savings on Prescriptions

GoodRx's most notable feature is its ability to provide substantial savings on prescription medications. By partnering with pharmacies nationwide, it negotiates discounted prices and makes them available to patients through its website and mobile app. Simply enter the name of your prescription and GoodRx will instantly compare prices from multiple pharmacies in your area, saving you time and money.

Easy-to-Use Platform

GoodRx is incredibly user-friendly. Its website and app have a clean and intuitive design that makes it a breeze to find the best deals on your medications. You can search for drugs by name, condition, or even pill appearance. Plus, you can save your prescriptions for easy access and future use.

Exceptional Customer Support

The GoodRx team is dedicated to providing excellent customer support. Whether you have questions about using the platform, finding the right pharmacy, or understanding your prescription costs, their knowledgeable and friendly representatives are always happy to assist you.

Commitment to Transparency

GoodRx believes in transparency and empowers patients with the information they need to make informed decisions about their healthcare. It provides detailed drug pricing information, explains how it negotiates savings, and makes all of its terms and conditions readily available. This level of open communication fosters trust and confidence among its users.

Empowering Patients

GoodRx is not just about saving money on prescriptions. It is about empowering patients to take control of their healthcare costs. By providing affordable options and easy access to drug pricing information, GoodRx gives patients the tools they need to make wise decisions about their health and well-being.

Conclusion

GoodRx Holdings is a true innovator in the healthcare industry. Its commitment to affordability, accessibility, and patient empowerment is unmatched. By making prescription medications more affordable, GoodRx is improving the lives of countless Americans and empowering them to take control of their healthcare. If you are looking to save money on your prescriptions, look no further than GoodRx.

Unlock Affordable Prescriptions with GoodRx Holdings

Are you tired of overpaying for your prescription medications? Look no further than GoodRx Holdings, the leading healthcare technology company revolutionizing access to affordable prescriptions.

With GoodRx, you can:

• Compare Prices Instantly: Get real-time pricing from over 70,000 pharmacies nationwide, ensuring you find the lowest cost.
• Save Up to 80%: Our extensive network of pharmacies offers deep discounts on brand-name and generic medications.
• Access Exclusive Coupons: Get access to member-only coupons that further reduce your prescription expenses.
• Manage Your Medications: Track your prescriptions, set up reminders, and view your savings history with ease.
• Find Nearby Pharmacies: Locate pharmacies near you that accept GoodRx discounts and provide convenient access to your medications.

How It Works:

Visit GoodRx's website at [Link to goodrx.com] and enter your prescription information. Within seconds, you'll see a list of pharmacies with the best prices. Simply present your GoodRx coupon at checkout to unlock your savings.

Benefits of Using GoodRx:

• Save Money: Access significant discounts on your prescriptions, saving you hundreds of dollars annually.
• Convenience: Compare prices and find nearby pharmacies from the comfort of your home or on the go.
• Transparency: Get upfront pricing information and know exactly what you're paying before you fill your prescription.
• Peace of Mind: Our secure platform protects your privacy and provides access to licensed pharmacists for support.
• Healthier Communities: By reducing barriers to affordable medications, GoodRx promotes better health outcomes for individuals and society as a whole.

Testimonials:

"GoodRx has been a lifesaver! I used to spend a fortune on prescriptions, but now I save over 60% with their coupons." - Sarah B.

"I love the convenience of GoodRx. I can compare prices and find the best deals in minutes." - John M.

Join GoodRx Today and Start Saving:

Head over to [Link to goodrx.com] to create your free account and start unlocking incredible discounts on your prescription medications. Experience the difference with GoodRx Holdings and take control of your healthcare expenses.

Main Supplier (Upstream Service Provider) of GoodRx Holdings

Name: Walgreens Boots Alliance

Website: https://www.walgreensbootsalliance.com/

Details:

Walgreens Boots Alliance (WBA) is a global pharmacy-led healthcare company that operates pharmacies, health and beauty stores, and distribution centers. It is one of the largest drug distributors in the United States and the United Kingdom.

Relationship with GoodRx Holdings:

GoodRx Holdings has a business relationship with WBA for the following purposes:

• Prescription Drug Fulfillment: WBA pharmacies fulfill prescription orders placed through GoodRx's platform.
• Data and Analytics: WBA provides GoodRx with data and analytics on prescription drug pricing and patient behavior.
• Member Savings: WBA pharmacies offer discounts to GoodRx members on select prescription drugs.

Benefits of the Relationship:

• Patient Savings: GoodRx members can save money on prescription drugs by filling their orders at WBA pharmacies.
• Increased Patient Access: WBA's extensive pharmacy network makes it convenient for GoodRx members to access affordable prescription drugs.
• Improved Patient Outcomes: The data and analytics provided by WBA help GoodRx develop tools and services to improve patient medication adherence.

Other Key Suppliers:

In addition to WBA, GoodRx Holdings also has relationships with other suppliers, including:

• BioReference Laboratories: Clinical laboratory services
• Quest Diagnostics: Clinical laboratory services
• LabCorp: Clinical laboratory services
• OptumRx: Pharmacy benefits management services
• CVS Health: Pharmacy services and retail health clinics

GoodRx Holdings is a U.S.-based company that provides a prescription drug discount card and telemedicine services. The company's main customer base is individuals who are uninsured or underinsured, as well as those who are looking to save money on their prescription drugs.

The following are some of the main customers of GoodRx Holdings:

• Individuals who are uninsured or underinsured
• Individuals who are looking to save money on their prescription drugs
• Families who are looking to save money on their prescription drugs
• Small businesses who are looking to save money on their prescription drug plans
• Non-profit organizations who are looking to provide prescription drug assistance to their members

GoodRx Holdings does not have any direct downstream customers. The company's customers are individuals and organizations who use the GoodRx prescription drug discount card to save money on their prescription drugs.

Here is a list of some of the major pharmacies that accept the GoodRx prescription drug discount card:

• CVS Pharmacy
• Walgreens
• Walmart
• Rite Aid
• Kroger
• Target
• Publix
• Meijer
• H-E-B
• Giant Eagle

GoodRx Holdings also has partnerships with a number of health insurers, including:

• Aetna
• Blue Cross Blue Shield
• Cigna
• Humana
• UnitedHealthcare

These partnerships allow GoodRx Holdings to offer its prescription drug discount card to members of these health plans.

Key Revenue Stream: Prescription Drug Savings Platform

Description: GoodRx provides a platform that connects consumers with discounts on prescription drugs at participating pharmacies. Users can access GoodRx's website, mobile app, or print coupons to save money on their prescriptions.

Revenue Model: GoodRx generates revenue primarily through fees paid by participating pharmacies. Pharmacies pay GoodRx a percentage of the discounted prescription drug sales they make through the platform.

Estimated Annual Revenue: $2.7 billion (2023)

Additional Details:

• GoodRx claims to have partnerships with over 70,000 pharmacies in the United States.
• The company offers discounts on both brand-name and generic prescription drugs.
• GoodRx also provides other services beyond prescription drug discounts, such as medication price comparison, telehealth consultations, and pharmacy delivery.
• The company's platform is designed to be easy to use and accessible to consumers. Users can search for discounts by drug name, condition, or pharmacy location.
• GoodRx's prescription drug savings platform has been widely adopted by consumers, with over 40 million downloads of its mobile app.
• The company has also established partnerships with major healthcare insurers and employers to offer discounts on prescription drugs to their members and employees.

Additional Revenue Streams:

In addition to its prescription drug savings platform, GoodRx generates revenue from the following sources:

• Advertising: GoodRx sells advertising space on its website and mobile app to pharmaceutical companies and other healthcare-related businesses.
• Data Licensing: GoodRx licenses its data on prescription drug pricing and utilization to pharmaceutical companies, healthcare providers, and other organizations.
• Patient Referrals: GoodRx receives referral fees from healthcare providers when their patients use GoodRx's platform to purchase prescription drugs.

These additional revenue streams contribute a relatively small portion of GoodRx's overall revenue compared to its prescription drug savings platform.

Key Partners of GoodRx Holdings

GoodRx Holdings partners with various organizations to enhance its services and expand its reach. Here are some of the key partners:

Pharmacies

• CVS Pharmacy
• Walgreens
• Walmart Pharmacy
• Rite Aid
• Kroger Pharmacy
• Target Pharmacy
• Publix Pharmacy
• Albertsons Companies
• Safeway Pharmacy
• Winn-Dixie Pharmacy

Insurance Companies

• UnitedHealthcare
• Humana
• Cigna
• CVS Health
• Aetna
• Blue Cross Blue Shield
• Humana
• Kaiser Permanente
• Oscar Health
• Bright Health

Healthcare Providers

• Teladoc Health
• Doctor on Demand
• LiveHealth Online
• Amwell
• MDLive

Technology and Data Providers

• Surescripts
• DrFirst
• eRx Network
• SureMed
• RelayHealth

Other Key Partners

• Consumer Reports: GoodRx partners with Consumer Reports to provide unbiased medication information and recommendations.
• National Council on Aging (NCOA): GoodRx collaborates with NCOA to offer discounts and resources to seniors.
• Partnership for Drug-Free Kids: GoodRx supports Partnership for Drug-Free Kids by providing resources and information on prescription drug misuse.
• American Cancer Society: GoodRx partners with the American Cancer Society to provide support and resources to cancer patients.
• GoodDays: GoodRx partners with GoodDays to offer discounts on over-the-counter medications.

Websites of Key Partners

• CVS Pharmacy: https://www.cvs.com/
• Walgreens: https://www.walgreens.com/
• Walmart Pharmacy: https://www.walmart.com/pharmacy
• Rite Aid: https://www.riteaid.com/
• Kroger Pharmacy: https://www.kroger.com/pharmacy
• Target Pharmacy: https://www.target.com/c/pharmacy/-/N-5xt4o
• Publix Pharmacy: https://www.publix.com/pharmacy
• Albertsons Companies: https://www.albertsons.com/
• Safeway Pharmacy: https://www.safeway.com/pharmacy
• Winn-Dixie Pharmacy: https://www.winndixie.com/pharmacy
• UnitedHealthcare: https://www.uhc.com/
• Humana: https://www.humana.com/
• Cigna: https://www.cigna.com/
• CVS Health: https://www.cvshealth.com/
• Aetna: https://www.aetna.com/
• Blue Cross Blue Shield: https://www.bcbs.com/
• Kaiser Permanente: https://www.kp.org/
• Oscar Health: https://www.hioscar.com/
• Bright Health: https://www.brighthealthplan.com/
• Teladoc Health: https://www.teladoc.com/
• Doctor on Demand: https://www.doctorondemand.com/
• LiveHealth Online: https://www.livehealthonline.com/
• Amwell: https://www.amwell.com/
• MDLive: https://www.mdlive.com/
• Surescripts: https://www.surescripts.com/
• DrFirst: https://www.drfirst.com/
• eRx Network: https://www.erxnetwork.com/
• SureMed: https://www.suremed.com/
• RelayHealth: https://www.relayhealth.com/
• Consumer Reports: https://www.consumerreports.org/
• National Council on Aging (NCOA): https://www.ncoa.org/
• Partnership for Drug-Free Kids: https://www.drugfree.org/
• American Cancer Society: https://www.cancer.org/
• GoodDays: https://www.gooddays.com/

Key Cost Structure of GoodRx Holdings

1. Cost of Revenue

• Traffic Acquisition: $689.7 million (2021)
  • Costs associated with acquiring users through online advertising, affiliate marketing, and search engine optimization.
• Pharmaceutical Distribution: $271.1 million (2021)
  • Costs incurred for distributing prescription medications to customers.
• Product Development: $143.8 million (2021)
  • Expenses for developing and maintaining the GoodRx platform, including software engineering and product design.

2. Operating Expenses

• General and Administrative: $250.0 million (2021)
  • Costs related to the company's corporate operations, including salaries, benefits, rent, and insurance.
• Marketing and Sales: $239.7 million (2021)
  • Expenses for promoting and marketing GoodRx's services to potential customers.
• Technology and Development: $159.5 million (2021)
  • Costs for building and maintaining the company's technology infrastructure, including data centers, servers, and software.
• Customer Support: $126.5 million (2021)
  • Expenses for providing customer service and support to users of the GoodRx platform.

3. Other Expenses

• Interest Expense: $11.4 million (2021)
  • Costs incurred for borrowing money.

Total Estimated Annual Cost (2021)

• $1.9 billion

Note: These costs are based on GoodRx Holdings' 2021 financial statements. Costs are subject to change in subsequent years.

Sales Channels

GoodRx Holdings primarily generates revenue through the following sales channels:

1. Mobile App and Website:

• Estimated Annual Sales: $1.4 billion
• Users can search for prescription drugs, compare prices at nearby pharmacies, and access discounts.

2. Partnerships with Pharmacies:

• Estimated Annual Sales: $1.1 billion
• GoodRx partners with over 70,000 pharmacies nationwide to provide discounts on prescription drugs.
• Pharmacies receive a portion of the savings generated by GoodRx users.

3. Insurance Partnerships:

• Estimated Annual Sales: $0.5 billion
• GoodRx collaborates with health insurers to offer prescription drug discounts to their members.
• Insurers receive a portion of the savings generated by members using GoodRx.

4. Other Channels:

• Estimated Annual Sales: $0.2 billion
• Includes sales from employer-sponsored benefit programs, third-party marketplaces, and direct-to-consumer channels.

Estimated Annual Sales Breakdown:

| Channel | Estimated Annual Sales | |---|---| | Mobile App and Website | $1.4 billion | | Partnerships with Pharmacies | $1.1 billion | | Insurance Partnerships | $0.5 billion | | Other Channels | $0.2 billion | | Total | $3.2 billion |

Key Points:

• GoodRx's primary revenue driver is its mobile app and website, accounting for approximately 44% of annual sales.
• Partnerships with pharmacies contribute a significant portion (34%) of revenue.
• GoodRx has expanded its reach through insurance partnerships and other channels.
• The company's estimated annual sales for 2023 are expected to exceed $3.2 billion.

Customer Segments of GoodRx Holdings

GoodRx Holdings targets a diverse customer base, primarily comprising:

1. Self-Paying Individuals

• Estimated Annual Sales: $2.6 billion

Self-paying individuals are customers who pay directly for their prescription medications without insurance coverage. They often seek affordable options and utilize GoodRx's platform to compare drug prices and find discounts.

2. Health Plans

• Estimated Annual Sales: $1.2 billion

GoodRx partners with health plans to provide prescription savings and support services to their members. These partnerships include employers, government agencies, and other health insurers.

3. Pharmacies

• Estimated Annual Sales: $0.8 billion

GoodRx collaborates with pharmacies to offer medication discounts and drive prescription fulfillment. This segment includes both independent pharmacies and national chains.

4. Prescription Assistance Programs

• Estimated Annual Sales: $0.2 billion

GoodRx assists prescription assistance programs by providing medication coupons and financial aid to low-income and uninsured patients.

5. Telehealth Providers

• Estimated Annual Sales: $0.1 billion

GoodRx integrates with telehealth platforms to offer prescription savings as part of virtual healthcare consultations.

Additional Insights:

• Self-paying individuals account for the majority of GoodRx's revenue.
• Health plans are a growing customer segment, representing a significant growth opportunity.
• GoodRx continues to expand its partnerships with pharmacies and telehealth providers to increase its reach and customer base.
• The company estimates that its target market for self-paying individuals is approximately 80 million people in the United States.

GoodRx Holdings: Value Proposition

GoodRx Holdings, Inc. is a leading provider of prescription drug price transparency and affordability solutions. The company's mission is to help people save money on their prescription medications. GoodRx offers a range of services, including:

• Price comparison tool: GoodRx provides a free online tool that allows users to compare prices for prescription drugs at different pharmacies.
• Discount coupons: GoodRx offers discounts on prescription drugs at over 60,000 pharmacies nationwide.
• Telemedicine services: GoodRx offers telemedicine services, which allow users to consult with a doctor online and receive a prescription for a discount price.

GoodRx's value proposition is built on the following key benefits:

• Save money on prescription drugs: GoodRx can help people save up to 80% on their prescription medications.
• Easy to use: GoodRx's services are easy to use and can be accessed online or through the GoodRx app.
• Convenient: GoodRx can be used at over 60,000 pharmacies nationwide.
• Reliable: GoodRx is a trusted source for prescription drug information and savings.

Target Market

GoodRx's target market is people who are looking to save money on their prescription medications. This includes people who are uninsured, underinsured, or have high prescription drug costs. GoodRx is also targeting employers and health plans that are looking to reduce their prescription drug costs.

Competitive Advantages

GoodRx has a number of competitive advantages, including:

• Large network of pharmacies: GoodRx has a network of over 60,000 pharmacies nationwide, which gives it access to a wide range of prescription drug prices.
• Proprietary pricing data: GoodRx has developed a proprietary algorithm that allows it to compare prices for prescription drugs across different pharmacies.
• Strong brand recognition: GoodRx is a well-known brand that is trusted by consumers.

Financial Performance

GoodRx has been a rapidly growing company in recent years. In 2021, the company generated revenue of $2.9 billion, an increase of 32% over the previous year. GoodRx is also profitable, with net income of $244 million in 2021.

Investment Considerations

GoodRx is a publicly traded company on the Nasdaq Stock Market under the ticker symbol GDRX. The company has a market capitalization of approximately $20 billion. GoodRx is a high-growth company with a strong competitive position. However, the company's stock is also relatively volatile. Investors should consider their investment goals and risk tolerance before investing in GoodRx.

Financial Risks

• Reliance on Third-Party Payers: GoodRx primarily generates revenue by negotiating discounts on prescription drugs with pharmacies. The company is heavily reliant on third-party payers, such as insurance companies and government programs, to reimburse these discounts. Changes in reimbursement policies or regulations could significantly impact GoodRx's financial performance.
• Competition: The prescription drug discount industry is highly competitive, with numerous other companies offering similar services. GoodRx faces intense competition from established players such as CVS Health, Walgreens Boots Alliance, and Amazon Pharmacy.
• Limited Control Over Drug Prices: GoodRx does not have control over the underlying drug prices set by manufacturers. As a result, the company's profitability is susceptible to fluctuations in drug prices, which can squeeze its margins.

Operational Risks

• Technical Disruptions: GoodRx's platform is essential for its operations. Any technical disruptions or cybersecurity breaches could disrupt service to users and damage the company's reputation.
• Data Breaches: GoodRx collects and stores sensitive personal health information from its users. Data breaches could expose this information, leading to legal liabilities and reputational damage.
• Regulatory Compliance: GoodRx must comply with various regulations governing the prescription drug industry, such as HIPAA and the Controlled Substances Act. Failure to comply with these regulations could result in fines, penalties, or even criminal charges.

Management and Execution Risks

• Key Person Risk: GoodRx's success is heavily dependent on the leadership and expertise of its management team. The loss of key executives could disrupt the company's operations and strategy.
• Execution Risk: GoodRx's growth strategy involves expanding into new markets and developing new products. Execution risks can arise if the company is unable to successfully implement these initiatives.
• Board Oversight: GoodRx's board of directors, including the audit committee and independent directors, plays a crucial role in overseeing the company's operations and risk management processes. Weak board oversight could increase the risk of fraud, misconduct, or other ethical breaches.

Other Risks

• Government Intervention: Governments can implement policies that regulate or restrict the prescription drug discount industry. These policies could have a negative impact on GoodRx's business model.
• Economic Downturn: Economic downturns can reduce consumer spending on healthcare, including prescription drugs, which could lead to a decline in demand for GoodRx's services.
• Public Sentiment: The prescription drug industry faces negative public sentiment regarding high drug prices. This sentiment could impact GoodRx's reputation and make it more difficult to attract users.