GoodRx (GDRX) is launching a virtual medicine cabinet feature — first in the Apple Store (APPL) and later for Android — to help users more easily track and refill regular prescriptions.
The free app links to GoodRx's discount pharmacy card platform, allowing users to refill prescriptions. The new app also gives GoodRx users another way to search for low-cost options. The medicine cabinet also includes daily reminders for pills to be taken and allows users to collect points that result in savings rewards.
Though the service is free — and thus doesn't directly provide additional revenue to the company —GoodRx said it will lead to an increase in its user base.
"We've seen a nearly 400% increase in prescription claims by users" from a soft launch, according to GoodRx chief product officer Mark Hull.
Hull told Yahoo Finance the company made use of its robust prescriptions claims database and knowledge of its customers' habits to create the new cabinet.
The concept of a virtual medicine cabinet to track daily prescription use and provide alerts for refills isn't new. But Hull said the company has a head-start advantage and feels it has created a tool, based on user habits, which will be a "strong differentiator."
GoodRx built its brand on discount prices for generic drugs. But it faces stiff competition in that space from newcomers and the likes of Amazon's (AMZN) pharmacy and Mark Cuban's Cost Plus Drugs.
"Whether it's Amazon or Apple or other retailers that may have these things, nobody is marrying ... the data, the ease of use, the savings and the rewards," Hull said.
GoodRx makes its money from the memberships it offers and limited telehealth services. But the bulk of its revenue is from the cut it gets from every prescription its pricing tool helps fill.
Early use of the new tool, which soft-launched in March for registered GoodRx members, showed a 40% increase in prescription fills, compared to non-registered GoodRx users, the company said in a statement.
The medicine cabinet also fulfills the goal of keeping individuals adherent to their medication routines. That, the company said, prevents more costly and catastrophic health issues.
The company, meanwhile, has been focused on tech and data to spur growth. But it has been on a learning curve in the healthcare space. For instance, it recently got into trouble with the FTC for failing to protect user data from the likes of Facebook and Google and targeting customers with health-related ads.
GoodRx's stock has plummeted more than 85% since it went public in 2020, hovering at roughly $6 per share. The company saw a 14% decrease in revenue year over year in its fourth quarter earnings for 2022 but saw full-year growth of 36% to $766.6 million year over year. GoodRx officials said the company is reaching a more stable position.
"Given that our business now has a more fixed cost base than it ever has historically through the risks ... we’ve taken, it means that the incremental dollars and growth we’re able to achieve will likely contribute to incremental margin, both in dollars and in percents going forward," said CFO Karsten Voermann during an earnings call in March.
Follow Anjalee Khemlani on Twitter @AnjKhem.
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