ROCHESTER — OptimizeRx Corp. (Nasdaq: OPRX), a provider of digital heatlh messaging for the pharmaceutical industry, announced the acquisition of Somerset, N.J.-based CareSpeak Communications Inc., a provider of health messaging for improved medication adherence and care coordination.
According to a filing with the U.S. Securities and Exchange Commission, the purchase price was $5.5 million in cash, $500,000 in OptimizeRx stock, and up to $3 million more if CareSpeak meets revenue targets for 2019 and 2020.
The SEC filing said CareSpeak is expected to have revenue of more than $1 million in 2018 and be profitable at that level.
The filing said the purchase agreement also includes non-compete agreements lasting four years for the sellers.
OptimizeRx bridges the communication gap between pharma and providers with health messages delivered through a nationwide network of electronic health record and ePrescribing providers. With CareSpeak, the company expands its reach to communicate directly to patients, resulting in greater medication adherence, persistence and affordability.
“There are immense resources being poured into quality improvement and value-based care, all for the simple reason that it improves outcomes and reduces costs for all stakeholders,” said William Febbo, CEO of OptimizeRx. “By adding CareSpeak’s complementary capabilities to our platform, we extend our ability to engage doctors and patients, and improve health. CareSpeak allows us to further bridge the critical communication gaps between pharma, healthcare providers and patients.”
According to a recent study, between 25 and 50 percent of patients worldwide do not take their medications as recommended. In the U.S. alone, sub-optimal adherence has been associated with 125,000 deaths and 10 percent of hospitalizations, and costs the industry up to $289 billion annually. By deploying CareSpeak’s technology through its nationwide digital health network, OptimizeRx will encourage medication adherence and persistence more effectively through greater affordability, patient engagement and interactive communication.
Clinical studies show CareSpeak’s automated patient engagement platform leads to better patient outcomes and can extend patient’s time on therapy with specialty medications for up to 3.5 months. CareSpeak-powered intervention reduces payer medical cost by $140 per member per month, according to published data.
“One of the keys to any good patient adherence and support program is an easy and seamless way for patients to get enrolled,” said CareSpeak CEO Serge Loncar. “CareSpeak’s mission is to serve the patient along their whole therapy journey with the right information at the right time, and OptimizeRx’s has the ability to serve the right message to the HCP and their patients at the point of prescribing. This ‘teachable moment’ will have a significant impact on creating a streamlined experience for the patient, leading to higher enrollment rates and ultimately improved outcomes.”
The integration of CareSpeak’s HITRUST certified and HIPAA compliant mobile messaging platform enables direct, real-time communication to patients. CareSpeak helps patients manage their own health with medication reminders, refill notices, side effect management information, and cost-saving co-pay programs. In addition, patients can contact nurse support services if needed.
CareSpeak will maintain its personnel at its New Jersey headquarters.
More at www.optimizerx.com.