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Just out: @goodrx S-1 for its IPO https://drugch.nl/3jqd0Mo ">https://drugch.nl/3jqd0Mo&q...

Wow. Insanely profitable! EBITDA = 40%

Revenue model:
1. Consumer uses GoodRx
2. Pharmacy pays #PBM
3. PBM pays GoodRx $$$

The following tweets explain how our crazy drug channel system enables this business

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The @GoodRx business model depends on #pharmacies having inflated “Usual & Customary” retail cash prescription prices.

These bogus list prices are far above cost & vary widely among pharmacies

But PBM network rates at pharmacy << U&C

So, consumer saves $$$ with GoodRx

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When a consumer uses GoodRx for a prescription, the #PBM collects a fee from the #pharmacy.

#PBM then pays GoodRx a % of pharmacy fee (or a fixed fee per Rx)

In 2019, GoodRx collected $364 million in fees on $2.5 billion in consumer Rx spending. Wow!!!

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Hence, GoodRx partners with big #PBMs like @OptumRx $UNH, @ExpressScripts $CI, @MedImpact, and @navituspbm

Deep irony: Pharmacies set U&C so high b/c PBM will not reimburse above pharmacy& #39;s U&C list price

See Section 4.3. of my 2020 report: https://drugch.nl/pharmacy ">https://drugch.nl/pharmacy&...

FYI, I wrote a longer article that updates and expands on this thread:

"How @GoodRx GoodRx Profits from Our Broken Pharmacy Pricing System"

Read it here ==> https://drugch.nl/2QGUeE9 ">https://drugch.nl/2QGUeE9&q...