![]() ![]() The fact that GoodRx is the only marketplace is a main contributor to its success. Finally, GoodRx is increasingly monetizing their high user engagement by selling ads to pharma and health tech companies looking to reach healthcare consumers. Better prices lead to more consumers which leads to more PBMs and even better prices. Thus, patients will always need to go through GoodRx for every transaction to ensure that they are getting the best price for any given drug. Pharmacies also cannot offer GoodRx’s prices directly due to their PBM contracts and PBM’s cash prices may vary significantly for the same drugs. ![]() ![]() Once onboarded, GoodRx is automatically accepted at every pharmacy within the PBM’s network, reducing the effort required to just signing up a few PBMs rather than tens of thousands of pharmacies. Unlike Groupon, GoodRx has zero supply costs as each PBM can fulfill as many claims as GoodRx sends them, therefore it is limited only by the demand it can generate. To date, GoodRx has saved consumers over $30 billion. In 2020, GoodRx collected almost $500 million in fees from PBMs at a 95% gross margin. Our understanding is that the admin fees that PBMs charge pharmacies are the same across the board. It earns revenue from a 15% take rate of each transaction that is paid by the pharmacy to the PBM which is then passed on to GoodRx. GoodRx boasts average discounts of 79% and has 7.5 million monthly users with dominant mindshare among consumers and physicians (+90 NPS and +86 NPS respectively). GoodRx at a high level is a prescription savings marketplace that aggregates coupons provided by PBMs and shows patients the lowest available price for any given drug across almost all pharmacies in the US. ![]()
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