SANTA MONICA, Calif. - GoodRx Holdings, Inc. (NASDAQ: GDRX), a prominent player in the U.S. prescription savings space, has announced the appointment of Wendy Barnes as its President and Chief Executive Officer, set to take effect on January 1, 2025. Barnes boasts over three decades of leadership within the pharmacy and medical benefit sectors. The appointment comes at a crucial time for GoodRx, which maintains impressive gross profit margins of 94% and generates annual revenue of $790 million. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value assessment.
Barnes will transition to GoodRx from her current role as CEO of RxBenefits, recognized for its pharmacy benefit solutions. Her previous positions include leadership roles at Express Scripts (NASDAQ:ESRX) Pharmacy and Rite Aid (NYSE:US90274J5618=UBSS), as well as a decade of service as a Medical (TASE:PMCN) Service Corps Officer in the U.S. Air Force.
Scott Wagner, Interim CEO of GoodRx, expressed confidence in Barnes' capability to lead GoodRx through its next growth phase, highlighting her expertise as a valuable asset in a time when the healthcare industry is facing significant challenges related to insurance coverage and increasing costs.
In her forthcoming role at GoodRx, Barnes will concentrate on strategic initiatives aimed at enhancing the company's platform, expanding product experiences for healthcare professionals, and enriching partnerships with retail pharmacies, insurers, and pharmaceutical manufacturers. Her focus will be on improving accessibility and affordability in healthcare, aiming to streamline the patient experience.
Trevor Bezdek, Co-founder and Chairman of GoodRx, acknowledged the contributions of Scott Wagner during his interim tenure and expressed enthusiasm about Barnes' potential to advance the company's mission.
GoodRx, established in 2011, has been instrumental in helping consumers save on prescription costs, with savings totaling over $75 billion to date. The platform is trusted by millions of consumers and healthcare professionals across the United States, providing savings options at a vast network of pharmacies nationwide.
The information in this article is based on a press release statement from GoodRx Holdings, Inc.
In other recent news, GoodRx Holdings Inc. has reported positive growth despite challenges in the retail pharmacy sector. The company's third-quarter financial results revealed an 8% year-over-year increase in total revenue, reaching $195.3 million. Additionally, the adjusted EBITDA grew by 21%, with a margin of 33.3%. GoodRx remains optimistic about its future, expecting revenue around $200 million in Q4 and projecting single-digit growth for 2025.
Despite this positive outlook, Mizuho (NYSE:MFG) initiated coverage on GoodRx with a Neutral rating and expressed concerns about the impact of recent store closures by several large retail drug chains on the company's performance. Mizuho's projections for GoodRx's revenue in 2026 stand at $860 million, which falls short of the company's target of around $1 billion. Furthermore, Mizuho's earnings per share (EPS) estimate for GoodRx in 2026 is $0.44, which is also lower than the Street's expectation of $0.48.
Despite the challenges, GoodRx is expanding its Integrated Savings Program to include uncovered brand medications, with a launch expected in early 2025. This is part of the company's strategy to drive future growth and deliver value to patients.
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