Read on Twitter
Problem w/healthcare:
"No guidance for what healthcare should cost with or without insurance" -Co-CEO Doug Hirsch
Leads to higher costs so that in USA:
-2/3 avoid care entirely
-20-30% of scripts are left at counter
-25% have no doc
"No guidance for what healthcare should cost with or without insurance" -Co-CEO Doug Hirsch
Leads to higher costs so that in USA:
-2/3 avoid care entirely
-20-30% of scripts are left at counter
-25% have no doc
Resulting unfortunate consequences:
For us: American dies every 4 mins from not taking prescribed medicine as directed
For Health system: 30% of ER visits could have been treated in other care settings. ER visits are expensive for all parties.
For pharmacies: Loss of sales
For us: American dies every 4 mins from not taking prescribed medicine as directed
For Health system: 30% of ER visits could have been treated in other care settings. ER visits are expensive for all parties.
For pharmacies: Loss of sales
The opportunity: "Inefficient, massive market that Americans have no ability to navigate... what’s true for prescriptions is true across healthcare." -Hirsch
Enter $GDRX w/solutions driving "script adherence, faster treatment, & better outcomes" thanks to broader access
Enter $GDRX w/solutions driving "script adherence, faster treatment, & better outcomes" thanks to broader access
The size of the opportunity: $800B
-$524B TAM prescription opp
-$250B TAM telehealth opp (thanks @heydoctorco)
-$30B TAM pharmaceutical manufacturer opp
-$524B TAM prescription opp
-$250B TAM telehealth opp (thanks @heydoctorco)
-$30B TAM pharmaceutical manufacturer opp
$GDRX: "Category-defining products delighting users for years" to capture market via:
1) reducing script cost by 70%+
2) enabling users to see doc to fill script remotely w/in hour
3) serving 150 conditions
4) growing telehealth offerings
5) script delivery
No insurance needed
1) reducing script cost by 70%+
2) enabling users to see doc to fill script remotely w/in hour
3) serving 150 conditions
4) growing telehealth offerings
5) script delivery
No insurance needed
4 business segments (68% of providers recommend):
1) GoodRx Prescriptions
2) @heydoctorco Telehealth Marketplace
3) GoodRx Manufacturer Solutions
4) GoodRx Gold Subscriptions
Saved Americans $20B to date on healthcare & made scripts newly affordable for 18M Americans!
1) GoodRx Prescriptions
2) @heydoctorco Telehealth Marketplace
3) GoodRx Manufacturer Solutions
4) GoodRx Gold Subscriptions
Saved Americans $20B to date on healthcare & made scripts newly affordable for 18M Americans!
Description of Manufacturer Solutions business:
Pharmaceutical manufacturers provide discounts via co-pay cards & assistance programs.
$GDRX partners with them to integrate and market these solutions on the $GDRX platform.
Pharmaceutical manufacturers provide discounts via co-pay cards & assistance programs.
$GDRX partners with them to integrate and market these solutions on the $GDRX platform.
Description of GoodRx Gold Subscriptions:
Savings program for $5.99/person or $9.99/family for more savings.
90% savings off standard list prices
Mail order feature at no incremental charge.
Subs contribute 2x more to the top line for $GDRX
Subs up 15x from 2018 to 2020
Savings program for $5.99/person or $9.99/family for more savings.
90% savings off standard list prices
Mail order feature at no incremental charge.
Subs contribute 2x more to the top line for $GDRX
Subs up 15x from 2018 to 2020
Not just consumers benefitting:
1) Pharmacies gain traffic from consumers now able to afford medicine
2) Healthcare professionals are judged by patient outcomes which $GDRX is directly improving with access and affordability
3) And yeah we save a ton
1) Pharmacies gain traffic from consumers now able to afford medicine
2) Healthcare professionals are judged by patient outcomes which $GDRX is directly improving with access and affordability
3) And yeah we save a ton
More subtle edges:
-Leader in scale & brand awareness for aggregating script pricing
-Scale coincided w/more savings for customers (4M+ monthly users)
-Combination of pharmacy savings & @heydoctorco telehealth service driving care access
-4.8/5 app score thanks to a great UI
-Leader in scale & brand awareness for aggregating script pricing
-Scale coincided w/more savings for customers (4M+ monthly users)
-Combination of pharmacy savings & @heydoctorco telehealth service driving care access
-4.8/5 app score thanks to a great UI
Impressive growth:
-CAGR of 57% since 2016
-2019 revs up 55% to $388M
-Revs up 48% 1st half of 2020 to $256M
-Most downloaded health app on $AAPL app store & $GOOG Play app store for 3 yrs
-CAGR of 57% since 2016
-2019 revs up 55% to $388M
-Revs up 48% 1st half of 2020 to $256M
-Most downloaded health app on $AAPL app store & $GOOG Play app store for 3 yrs
Mouth-watering operating leverage:
-2018 op margin: 31%
-2019 op margin: 36%
-2020 1st half op margin: 38%
-2019 op CF: 83M up 84% YoY
-Generated 83M in op CF already this yr
-100M in FCF 1st half of 2020 up 257% YoY
-2019 NI up 50% to $66M
-NI up 77% 1st half of 2020
-2018 op margin: 31%
-2019 op margin: 36%
-2020 1st half op margin: 38%
-2019 op CF: 83M up 84% YoY
-Generated 83M in op CF already this yr
-100M in FCF 1st half of 2020 up 257% YoY
-2019 NI up 50% to $66M
-NI up 77% 1st half of 2020
Threats:
$AMZN owns @PillPack. This is direct competition for the pharmacy biz.
$TDOC is a telehealth giant. @Amwell another going public. There are many more.
$CVS & $WBA could theoretically do this themselves but it has been 10 years so...
$AMZN owns @PillPack. This is direct competition for the pharmacy biz.
$TDOC is a telehealth giant. @Amwell another going public. There are many more.
$CVS & $WBA could theoretically do this themselves but it has been 10 years so...
Leadership:
Founder led! Woohoo!
Doug Hirsch co-founder & co-CEO. Previously with @Yahoo & $FB
Trevor Bezdek co-founder & co-CEO. co-founded @bioware
Here are the @Glassdoor ratings... enough said https://www.glassdoor.com/Reviews/GoodRx-Reviews-E1138304.htm
Founder led! Woohoo!
Doug Hirsch co-founder & co-CEO. Previously with @Yahoo & $FB
Trevor Bezdek co-founder & co-CEO. co-founded @bioware
Here are the @Glassdoor ratings... enough said https://www.glassdoor.com/Reviews/GoodRx-Reviews-E1138304.htm
I'm excited for this one.
I love companies that profit by making the
a better place. $GDRX clearly does both.
Need to see where the valuation shakes out when it debuts.
But again, I really like this one and will own it eventually.
S1:
https://www.sec.gov/Archives/edgar/data/1809519/000119312520234662/d949310ds1.htm#rom949310_11
I love companies that profit by making the
a better place. $GDRX clearly does both.Need to see where the valuation shakes out when it debuts.
But again, I really like this one and will own it eventually.
S1:
https://www.sec.gov/Archives/edgar/data/1809519/000119312520234662/d949310ds1.htm#rom949310_11
On the $CVS $WBA as possible competition front:
Neither has larger than a 15% share of pharmacies in USA.
$GDRX would have to aggregate 16% of pharmacies to build a competitive moat neither party could match alone.
$GDRX has 68% of pharmacies on its services today.
Neither has larger than a 15% share of pharmacies in USA.
$GDRX would have to aggregate 16% of pharmacies to build a competitive moat neither party could match alone.
$GDRX has 68% of pharmacies on its services today.
Decided I will be adding to this on day 1 if the valuation comes in below $15B. Most recent raise was @ 2.6B but ya never know... lot of excitement for this one.
And completely forgot:
@jablamsky note on $GDRX gets the credit/procuring cause for this thread/opinion. Thank you!
@jablamsky note on $GDRX gets the credit/procuring cause for this thread/opinion. Thank you!
