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GoodRx(GDRX) - 2025 Q2 - Earnings Call Transcript
2025-08-07 13:00
Financial Data and Key Metrics Changes - Total revenue for the second quarter was $203.1 million, up 1% year over year, aligning with expectations when excluding the impact of Rite Aid [24] - Adjusted EBITDA for the quarter was $69.4 million, a 6% increase year over year, resulting in an adjusted EBITDA margin of 34.2%, an improvement of 160 basis points compared to the same period last year [26] - The company closed the quarter with $281.3 million in cash and repurchased approximately $46.4 million worth of shares at an average price of $4.53 per share [27] Business Line Data and Key Metrics Changes - Revenue from pharma manufacturer solutions was $35 million, up 32% year over year, indicating strong performance and a projected growth of 30% or higher for 2025 [25][20] - Prescription transaction revenue declined by 3% year over year, primarily due to the impact of Rite Aid and the erosion of the ISP program [24][28] Market Data and Key Metrics Changes - The company noted a decline in monthly active consumers, which is expected to continue in the short term due to the transition from traditional retail transactions to consumer direct price points [24][25] - The healthcare landscape is changing, with Congress passing a budget bill that cuts funding for Medicaid and individual exchange products, potentially leaving nearly 10 million people uninsured [13] Company Strategy and Development Direction - The company is focused on strengthening relationships with pharma manufacturers and expanding its share of wallet across market access, consumer marketing, and HCP budgets [6] - GoodRx is enhancing its integrated savings program to service brand medications in addition to generics, aiming to deepen engagement with consumers [8] - The launch of a condition subscription product for erectile dysfunction is part of the strategy to maximize returns on existing capabilities and deepen consumer engagement [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to respond to changes in the healthcare landscape and emphasized the importance of GoodRx in providing access to affordable medications [10][15] - The company acknowledged short-term negative impacts from Rite Aid's bankruptcy and a decline in volume from one of its PBM partners but remains optimistic about long-term growth opportunities [11][28] Other Important Information - The company is actively advocating for policies that expand access to affordable medication and is engaged with government entities exploring models to reduce brand drug pricing directly to consumers [16][15] - The launch of GoodRx Community Link aims to support independent pharmacies by providing predictable pricing and favorable economics [18] Q&A Session Summary Question: Can you elaborate on the ISP and new partnerships? - Management acknowledged the importance of ISP and noted that while expectations should be tempered, they are adding new partners and expanding the program [34][36] Question: How do you view the growth of Manufacturer Solutions? - Management expressed confidence in achieving 30% revenue growth for Manufacturer Solutions, driven by strong ROI studies and engagement with pharma partners [44][48] Question: What is the impact of Rite Aid and ISP on guidance? - Management indicated that the revenue impact from Rite Aid and ISP is roughly half and half, with ongoing efforts to recapture consumers affected by Rite Aid's closures [72][74] Question: Are there shifts in consumer behavior affecting platform usage? - Management noted that rising consumer prices have pushed more transactions into funded benefits, impacting monthly active consumer counts, but they expect tailwinds to return in the future [96][97] Question: What proactive actions are being taken regarding ISP? - Management emphasized the importance of adding more commercial lives and expanding partnerships to grow the ISP program despite challenges with one particular partner [99][101]
Cardinal Health Foundation expands Equity Rx to increase access to prescription medications, bringing total investment to $5M
Prnewswireยท 2025-07-30 10:20
Core Insights - Cardinal Health is expanding its Equity Rx program to improve access to prescription medications for those who cannot afford them, with a total investment of $5 million from the Cardinal Health Foundation [1][3][5] Group 1: Program Expansion - The Equity Rx program, initially launched in Ohio in 2023, aims to address the critical need for affordable medication access, especially for individuals with chronic conditions [2][3] - The program has successfully established partnerships with charitable clinics, allowing for the direct delivery of medications to patients during their primary care visits [3][6] - Equity Rx has expanded to 10 charitable clinics across Ohio, Pennsylvania, Tennessee, and Illinois, helping thousands of patients access free medications [3][6] Group 2: Statewide Drug Repository - Cardinal Health is launching Ohio's first statewide prescription drug repository to facilitate the donation and distribution of unused medications, which will help expand access to care [4][6] - The repository will be developed in partnership with the Ohio State Board of Pharmacy and is expected to be fully operational by 2027 [4][6] - The initiative aims to reduce waste from unexpired medications in nursing homes and long-term care facilities, ensuring they are redirected to those in need [4][6]