Key Takeaways:
GoodRx is an American online healthcare platform that provides prescription offerings, subscription offers, pharmaceutical manufacturing solutions, and telehealth offerings.
They collaborate in harmony with pharmacies and healthcare providers all across the country to give prescription and medical services to the public at reduced pricing. The users can easily compare the prices of different drugs online and inquire about their quality.
Its numerous services provide consultation, information about medical services, and low-priced prescriptions that have helped at least 20 million people save around $20 billion in prescription expenses.
As of 2020, their net worth amounts to $21.8 billion while generating revenue of $550.7 million. According to statistics and surveys, 325,000 healthcare providers are reported using the company, and about 70,000 pharmacies are included in GoodRx.
Company Profile:
| Company Name | GoodRx Inc. © |
| Website | goodrx.com, heydoctor.goodrx.com, goodrx.treatment.com |
| Founded- In: | 2011 |
| Headquarters: | Santa Monica, California, United States |
| Founder | Doug Hirsch, Scott Marlette, Trevor Bezdek |
| Key People | Doug Hirsch (Co-founder and Co-CEO), Trevor Bezdek (President and CEO), Scott Marlette ( Co-CEO), Jordon Michaels (Directors of operations), John Asalone (General Manager), Karsten Voermann (CFO), Andrew Slutsky (President, Consumer), Babak Azad (Chief Marketing Officer and SVP), Bansi Nagji (President, Healthcare), |
| Business Model | Online Platform |
| Product/Services | Prescription Offering, Subscription offer, Pharmaceutical Manufacturer Solutions Offering, Telehealth Offerings |
| Competitive Advantage | Healthcare, Technology, Pharmacy, |
| Revenue | $550.7 million Est. as of 2020 |
| Competitors | Singlecare and RxSaver, Doctor on Demand, MDLIVE, Amwell, and Teladoc Health |
Introduction:
GoodRx is an American online healthcare platform that provides prescription offerings, subscription offers, pharmaceutical manufacturing solutions offering, and telehealth offerings.
They collaborate in harmony with pharmacies and healthcare providers all across the country to provide prescription and medical services to the public at reduced pricing. The users can easily compare the prices of different drugs online as well as inquire about their quality.
Its numerous services provide consultation, information about medical services, and low-priced prescriptions that have helped at least 20 million people save around $20 billion in prescription expenses.
What is GoodRx?
GoodRx is an online healthcare platform that provides prescription offerings, subscription offerings, pharmaceutical manufacturing solutions offering, and telehealth offerings.
They collaborate with pharmacies and healthcare providers all across the country to provide prescription and medical services to the public at reduced pricing.
GoodRx services include:
- They will provide online doctor visitations and consultations at reduced pricing.
- Monthly GoodRx Gold subscription to provide a discount over-prescription of drugs.
- Multiple lab testing options in an area at reduced pricing.
- Medical info and consultation on the internet and phone.
- Better resources for frontline medical professionals
After going public, all of this information will be provided to everyone. This way, the general public will not be exploited by different organizations charged through roofs heedless of anyone’s need. GoodRx also acquired HeyDoctor, and after launching its telehealth services, the company became easily accessible to everyone.
GoodRx proved to be immensely helpful during the Covid-19 pandemic when it offered testing places and telehealth to the people for regular consultation for patients of the virus and other immune-compromised persons.
A Short History Of GoodRx:
GoodRx was founded in 2011 by Doug Hirsch, Trevor Bezdek, and Scott Marlette. It was headquartered in Santa Monica, California, with Doug Hirsch and Trevor Bezdok acting as CEOs. Out of all three of them, Bezdak was the one who had tried to launch other companies before the founding of GoodRx.
As a Biological Sciences and Computer Science graduate of Stanford, he launched his first company in 1999 just after his graduation with the name of Bioware, which was developed to gather and provide information tools for scientific researchers. Unfortunately for him, this proved to be a failed venture.
Nevertheless, with the help of experience and knowledge he got from the doomed company, he launched another company known as Tyrac, which served as a consultancy firm for delivering technology strategy and implementation services aimed at media and healthcare companies.
This finally proved to be fruitful as the company gradually became one of California’s largest IT service providers. Although in 2007, Tyrac was acquired by NTT Data.
Hirsch and Marlette had already met beforehand on Facebook. Hirsch was renowned in the tech world and went on to launch DailyStrength. Hirsh held the VP of Product, and Marlette was in the engineering department and stayed there for a few more years.
His own experiences inspired Hirsch with the pharmacies. He realized that each pharmacy charged its own fees for the prescription of drugs, which led to many organizations exploiting the public for their profit.
At the time of its launch, GoodRx could list over 1 million drug prices while also covering about 2,000 different drugs. Soon after its launch, the company launched an IOS app for the customers for easy access other than a desktop website.
At first, business was slow, which prompted the company to raise funds, first time, $1 million in a funding round led by Founders Fund, GRP Partners, Highland Capital, SV Angel, and many others in 2012.
The process was slow and quiet, but gradually the company attracted more and more customers and increased its user base. In 2016, it merged with Iodine, another company that provided information for medications and enabled users to assess their quality.
GoodRx hit unicorn status in 2018. This happened because it successfully pulled $748.8 million from private equity investor Silver Lake.
Before this happened, it was considering a merger with other companies, but the deal never went through. In 2019, the company passed an essential mark in its history by saving $10 billion on prescription expenses for customers.
This was when the company started to think about branching out into other industries. As a result, GoodRx acquired HeyDoctor (which provided online medical services) in 2019, which proved to be immensely helpful in the Covid-19 pandemic. They provided a testing marketplace and telehealth to the public.
The business model was unique, and this goodwill helped the public and made the company raked in profit. This resulted in the firm’s expansion, and they took the step of going to the public in 2020. The company was profitable for three consecutive years, which is very rare for modern tech companies.
Despite its success and positive image, it has not been as smooth sailing in all these years. GoodRx was accused of sharing data with 3rd party companies and invading the privacy of its customers. This prompted the organization to stop any information sharing to ensure customer privacy.
Right now, there are around 10 million users of GoodRx. According to statistics and surveys, 325,000 numbers of health care providers are reported using the company.
About 70,000 pharmacies are included in GoodRx, and the platform itself proudly claims that they have at least helped save $20 billion of users in expenses of prescription drugs.
They also say that they have helped around 18 million people pay for the subscription that they otherwise wouldn’t have been able to do so. Approximately 15 million people visit the official website every month to acquire information about their services, and the company employs around 300 people.
What is the Business Model of GoodRx?
GoodRx is an online healthcare platform that provides prescription offerings, subscription offerings, pharmaceutical manufacturing solutions, and telehealth offerings.
They collaborate with pharmacies and healthcare providers all across the country to provide prescription and medical services to the public at reduced pricing.
How Does GoodRx Make Money?
There are actually several ways GoodRx generates its revenue. The technology and the ads sold by the company are some of the contributors to the revenue.
The different pharmaceutical companies promote their trademarked medications through GoodRx add campaigns for a fixed period. The company in term acquires a fee per campaign.
Another source is the referral fee that the platform provides to its users. Added to that is the consultation provided online and on the phone. This leads to another source of revenue; telehealth. The customer can get health care or a simple consultation from a 3rd party medical care provider. From this, the company gets a commission fee.
Another source is the subscription fees. For a fixed monthly fee, customers can subscribe to GoodRx Gold to give a discount for prescriptions of over 1000 drugs and services related to health care. But the primary revenue generator is the coupons given to patients to save money on prescriptions.
GoodRx Funding, Valuation & Revenue:
GoodRx has raised approximately $872.9 million in funding throughout six equity funding rounds. In 2020, when the company went public, it raised a whopping additional amount of $1.1 billion in September.
The most well-known investors of the company include Silver Lake, Francisco Partners, Founders Fund, and Spectrum Equity.
In 2020, the company’s net worth was estimated to be around $10 billion before it went public. When it IPO’d in the same year, the value was about $12 billion, increasing to $21.8 billion.
