Weekend theme: S-1s
peaked my interest.
THREAD TIME!
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
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
The opportunity: "Inefficient, massive market that Americans have no ability to navigate... what’s true for prescriptions is true across healthcare." -Hirsch
Enter 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
: "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
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! 👏👏
Description of Manufacturer Solutions business:
Pharmaceutical manufacturers provide discounts via co-pay cards & assistance programs.
partners with them to integrate and market these solutions on the 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
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 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
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 app store & 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
Threats:
owns @PillPack. This is direct competition for the pharmacy biz.
is a telehealth giant. @Amwell another going public. There are many more.
& 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 &
Trevor Bezdek co-founder & co-CEO. co-founded @bioware
Here are the @Glassdoor ratings... enough said
glassdoor.com/Reviews/GoodRx…
I'm excited for this one.
I love companies that profit by making the 🌎 a better place. 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:
sec.gov/Archives/edgar…
On the as possible competition front:
Neither has larger than a 15% share of pharmacies in USA.
would have to aggregate 16% of pharmacies to build a competitive moat neither party could match alone.
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 gets the credit/procuring cause for this thread/opinion. Thank you!
Last thing I promise (told you I was a stock market nerd🙂🤷♂️)
Took me less than a minute to create an account after I downloaded the @GoodRx app to start comparing prices on random scripts.
I can see why the app scores are so high.
Eventually long
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