OptimizeRx Corp. (NASDAQ: OPRX) to acquire RMDY Health,
a multipurpose digital therapeutics SaaS platform, for
$16 million in cash and equity. The RMDY Health platform is used by
pharma, payers, MedTech companies and medical associations
nationwide. The acquisition adds three new client segments to
OptimizeRx’s existing patient engagement platform – payers, medtech
and medical associations – further simplifying chronic disease
management and drug adherence for healthier results at lower costs.
OptimizeRx is a recognized leader in bridging the
communication gap between pharma and providers with its digital
health messaging platform delivered through its nationwide network
of leading electronic health record (EHR)
and ePrescribing providers. The addition of RMDY Health
expands the reach of this network by using patient apps and
web access as an additional channel for digital heath
messaging.
This strategic acquisition is the second for OptimizeRx over the
past year focused on enhancing patient engagement. It further
diversifies the company’s recurring revenue stream and scales its
solution set to better address larger opportunities in digital
health.
"We welcome the RMDY team and their powerful SaaS platform to
support our mission of improving medication adherence and care
coordination," said William Febbo, CEO of OptimizeRx. "This
acquisition is especially timely, given how stakeholders are
increasingly shifting their budgets to digital delivery as the
preferred method of communicating to physicians and patients.”
“By adding RMDY Health’s complementary capabilities to our
platform,” continued Febbo, “we not only extend our ability to
engage doctors and patients for our pharmaceutical clients, we
introduce important client segments to our solution suite. We can
now further bridge the critical communication gaps
between pharma, healthcare providers, payers, medical
associations and patients."
Digital therapeutics (DTx) consists of delivering rich patient
programs with treatment and affordability information, lifestyle
and condition trackers, Internet device connectivity, forms and
surveys, with this all supported by a wide range of communication
capabilities delivered via chat, bots, audio and telehealth. RMDY
Health enables this functionality for its customers, with its DTx
solutions delivering a variety of intervention mechanisms that help
treat chronic conditions, such as diabetes and heart disease.
According to Grand View Research, the global market for digital
therapeutics is growing at a compounded annual growth rate of 21%
and is expected to hit $9.4 billion by 2025.
“DTx programs are widely considered highly effective, yet
such solutions usually require expensive and complex
implementations,” noted RMDY Health CEO and co-founder, Dr. Amir
Kishon. “RMDY was built to help eliminate this cost and
complexity. Our technology platform makes it possible for any
health stakeholder to rapidly and effortlessly digitize their
programs and connect directly
with patients, which is increasingly becoming
the standard delivery format.
“The combination of OptimizeRx and RMDY provides the market with
a flexible SaaS platform that enables a wider range of
stakeholders to more easily and rapidly launch a
variety of digital care management and patient
engagement programs.”Added Febbo: "We see a great cultural fit
with Amir and his team, given our mutual mission to
transform communication across the
provider-pharma-patient-payer care continuum. They bolster our
presence within digital therapeutics, provide additional
opportunities for recurring revenue growth, extend our reach
within existing clients and add additional client
segments, as well as enhance our digital platform to
facilitate more scale. We expect this acquisition
to be accretive within the first 18 months and
believe we have aligned to have a highly incentivized team pushing
for growth."
In consideration for 100% of RMDY Health, its shareholders will
receive $8 million in cash and $8 million in equity when the
transactions closes, which is estimated to be within
the next 30 days subject to certain closing conditions. RMDY
Health’s estimated annual revenue for 2019 is $3 million. Only
revenue from the closing date through the end of the year will be
included in OptimizeRx’s annual consolidated financial
statements.
RMDY will maintain its technology team in Tel Aviv, Israel
and U.S. based personnel and use the OptimizeRx New
Jersey headquarters. OptimizeRx is being advised by Excel
Partners on the transaction and RMDY Health is being advised by
Reade Street Advisors on the transaction.
Additional details about the acquisition will be available in a
Form 8-K to be filed by OptimizeRx with the U.S. Securities and
Exchange Commission, and accessible
at investors.optimizerx.com.
About RMDY Health RMDY Health is a leading
provider of collaborative digital therapeutics SaaS solutions
for the healthcare industry. Its SaaS platform offers
a complete digital framework to help life science and
healthcare stakeholders rapidly and effortlessly design and launch
their own white-label collaborative digital care and patient
support programs. The company’s web and mobile platform supports a
wide range of digital therapeutic initiatives, with a focus on care
management, chronic disease management, pharma patient support
programs, research and wellness. For more information about RMDY
Health, go to www.rmdy.health.
About OptimizeRx OptimizeRx® (NASDAQ: OPRX), a
digital health company, connects pharmaceutical companies
to patients and providers, offering greater affordability,
adherence and brand awareness at the point-of-care. As the nation’s
largest point-of-prescribe promotional platform for the
pharmaceutical industry, OptimizeRx provides a direct
channel for pharma companies to communicate with healthcare
providers right within their workflow and also directly to
patients.
The cloud-based solution supports patient adherence to
medications and better healthcare outcomes with real-time access to
financial assistance, prior authorization, education and critical
clinical information. OptimizeRx provides more than half
of the ambulatory patient market with access to these benefits
through leading EHR platforms like Allscripts, Amazing Charts and
Quest, and directly via its mobile communications
platform.
For more information, follow the company
on Twitter, LinkedIn or
visit www.optimizerx.com.
Important Cautions Regarding Forward-Looking
Statements This press release contains forward-looking
statements within the definition of Section 27A of the Securities
Act of 1933, as amended, and such as in section 21E of the
Securities Act of 1934, as amended. These forward-looking
statements should not be used to make an investment decision. The
words 'estimate,' 'possible' and 'seeking' and similar expressions
identify forward-looking statements, which speak only as to the
date the statement was made. The company undertakes no obligation
to publicly update or revise any forward-looking statements,
whether because of new information, future events, or otherwise.
Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted, or quantified.
Future events and actual results could differ materially from those
set forth in, contemplated by, or underlying the forward-looking
statements. The risks and uncertainties to which forward-looking
statements are subject include, but are not limited to, the effect
of government regulation, competition and other material risks.
OptimizeRx ContactDoug Baker, CFOTel (248)
651-6568 x807dbaker@optimizerx.com
Media Relations ContactNicole Brooks, Innsena
CommunicationsTel (860) 800-2344nicolebrooks@innsena.com
Investor Relations ContactsCristina Colon,
IR Tel (787) 210-4595 Contact Us
Ron Both, CMA Tel (949) 432-7557 Contact Us
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