GoodRx (GDRX) UBS Global Healthcare Conference 2024 summary

Forward-looking guidance and industry dynamics

• Anticipates single-digit percentage growth for 2025, with a wider range due to uncertainty in PBM and pharmacy negotiations.

• Pharma Manufacturer Solutions expected to grow 20% in Q4 and accelerate further next year.

• Margins have improved by 520 basis points year-over-year, driven by business mix and operational efficiency.

• Volume in the prescriptions marketplace is up, with monthly active users increasing 7% year-over-year.

• Industry sees a shift in leverage toward pharmacies due to reimbursement pressures, impacting admin fees and growth variability.

Direct contracting and business model evolution

• Direct contracting now accounts for over 30% of prescription volume, offering twice the margin of non-direct agreements.

• Eight of the top 10 retailers have some form of direct contract, enhancing pricing flexibility and retailer margin.

• Direct contracting allows tailored pricing strategies, supporting both pharmacy margin and volume objectives.

• The shift is driven by large retailers, with future growth expected but not guaranteed to become the majority.

• Direct contracting programs are customized by retailer and drug basket, often used to drive seasonal or strategic objectives.

Integrated savings program (ISP) and PBM relationships

• ISP enables consumers to automatically receive the lower of their copay or GoodRx price using their benefits card.

• Program originated from employer and employee demand for integrated savings, now supported by major PBMs.

• ISP expanded in 2025 to include off-formulary medications, increasing potential savings and reach.

• GoodRx collaborates with PBMs on messaging and attends broker conferences to drive adoption.