Three Ways GoodRx Helps Pharmacies Increase Profitability & Drive Innovation
At GoodRx, we see these challenges firsthand, which is why we have doubled our efforts over the last year to serve as a trusted ally that can help pharmacies of all sizes solve the industry problems they face. And we’re driving real results.
GoodRx estimates that its partner pharmacies’ profitability was up over 20% per script in January 2025 compared to the same period in 2024. We attribute this performance to a combination of a cost-plus model, pricing partnerships, and brand drug solutions.
As an example, GoodRx’s deep engagement with one major retailer on pricing drove over $20 million of estimated incremental annual margin for the retailer, while also contributing incremental GoodRx prescription transaction revenue and still delivering low prices to consumers. It was a win for all sides.
By focusing on pharmacy profitability efforts and technological innovation, GoodRx is helping pharmacies better engage with consumers, improve workflows, lower cost to fill, and elevate their digital footprint—all while also delivering on their profitability goals.
GoodRx is delivering this value in three key ways:
1) Direct contracting offers independent community pharmacies control over pricing and favorable margins.
GoodRx is excited to launch a new offering designed specifically for independent community pharmacies: GoodRx Community Link.
Locally owned and operated pharmacies face unique challenges compared to retailers, so GoodRx Community Link is designed to better serve their needs. Starting in June 2025, independent pharmacy teams will be able to enter into a direct contract with GoodRx, which leverages a cost-plus pricing model to deliver more direct control over pricing and favorable margins.
Direct contracts align economic incentives between GoodRx and the independent pharmacy to help drive growth for both sides. They will also have the option to manage participation in the company’s Integrated Savings Programs, which provide eligible consumers with a lower cash price on applicable generics through partnerships with Caremark, Express Scripts, MedImpact, and Navitus.
2) Pharmacy-directed contracting enhances retailers’ ability to merchandise.
GoodRx works with retail pharmacies to design custom pricing agreements based on the pharmacy’s unique needs. These include a combination of the company’s traditional multi-PBM model, where GoodRx aggregates multiple PBM price points for a drug and then delivers a competitive price to the consumer, and direct contracting, where the pricing agreement is between GoodRx and the pharmacy.
By designing agreements that benefit each pharmacy partner, GoodRx is able to help them grow claims volume and manage gross margins. Currently, GoodRx has some form of direct agreement with eight of its top 10 pharmacy partners.
3) Technological capabilities help streamline workflows and improve the customer experience.
The complexity of the pharmacy experience has resulted in many friction points for both consumers and pharmacy teams, with long lines, a lack of upfront pricing for consumers, minimal clarity on plan coverage, and many other factors contributing to frustration on both sides. GoodRx is working to solve these pain points by delivering an engaging digital consumer experience that improves how people get their medications via the GoodRx platform.
Through its integrated e-commerce solution, GoodRx checks medication inventory, validates a user’s prescription, and enables the consumer to pay using a GoodRx coupon before picking up their prescription in-store. This is compelling for consumers and also helpful to pharmacies by streamlining workflows, reducing cost to fill, minimizing abandonments, and enhancing the digital experience.
Ultimately, GoodRx understands the critical role pharmacies of all sizes play in our communities and is actively working to help solve the challenges they face industry-wide around lower reimbursement and rising store costs. As a trusted partner, GoodRx is adapting and growing its offerings to improve the retail pharmacy business model and ensure a sustainable future for the sector.
To learn about GoodRx Community Link, we invite independent community pharmacy teams to register to watch the recorded webinar.
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