Read on Twitter
1 / 4
Just out: @goodrx S-1 for its IPO https://drugch.nl/3jqd0Mo
Wow. Insanely profitable! EBITDA = 40%
Revenue model:
1. Consumer uses GoodRx
2. Pharmacy pays #PBM
3. PBM pays GoodRx $$$
The following tweets explain how our crazy drug channel system enables this business
Just out: @goodrx S-1 for its IPO https://drugch.nl/3jqd0Mo
Wow. Insanely profitable! EBITDA = 40%
Revenue model:
1. Consumer uses GoodRx
2. Pharmacy pays #PBM
3. PBM pays GoodRx $$$
The following tweets explain how our crazy drug channel system enables this business
2 / 4
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 $$$ with GoodRx
The @GoodRx business model depends on #pharmacies having inflated “Usual & Customary” retail cash prescription prices.
These bogus list prices are far above cost & vary widely among pharmacies
But PBM network rates at pharmacy << U&C
So, consumer saves $$$ with GoodRx
3 / 4
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!!!
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!!!
4 / 4
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's U&C list price
See Section 4.3. of my 2020 report: https://drugch.nl/pharmacy
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's U&C list price
See Section 4.3. of my 2020 report: 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
"How @GoodRx GoodRx Profits from Our Broken Pharmacy Pricing System"
Read it here ==> https://drugch.nl/2QGUeE9
