GoodRx (GDRX) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Strategic evolution and leadership

• New leadership under Scott Wagner has brought increased rigor, focus, and energy, emphasizing retail partnerships and a hybrid contracting strategy with both pharmacies and PBMs.

• Growth goals have been refined, particularly for the core prescription transactions and expansion into commercial/funded benefits via integrated savings.

• The management team has been strengthened, and standardized go-to-market programs have been introduced for the Pharma Manufacturer Solutions business.

• The organization has responded positively to the leadership change, with a sharper focus on ecosystem support, product refinement, and consumer engagement.

Growth drivers and financial performance

• Growth is driven by the prescriptions marketplace, especially through the Integrated Savings Program, and by scaling the Pharma Manufacturer Solutions business.

• Pharma Manufacturer Solutions revenue has grown from $17–18 million in 2020 to nearly $100 million.

• Adjusted EBITDA margins reached 32.5% in Q2 2024, up 400 basis points year-over-year, driven by top-line growth and restructuring savings.

• Operating leverage is expected to increase as revenue grows, with long-term margin targets above 35%.

• Investments remain disciplined, with limited need for additional capital and a focus on efficiency.

Market dynamics and pharmacy landscape

• Pharmacy closures, especially Rite Aid, have created short-term friction, resulting in a $5 million impact, but underlying prescription volume trends remain positive.

• The hybrid contracting model now includes direct contracts with seven of the top ten retailers, improving pricing and relationships.

• PBMs remain supportive, with major players integrating GoodRx into their offerings.

• GoodRx’s value proposition for pharmacies has increased, helping attract and retain customers and reduce unfilled prescriptions.