ROCHESTER–OptimizeRx Corp. (NASDAQ: OPRX), the provider of digital customer communication services to the pharmaceutical industry, announced plans to require RMDY Health, a New York City-based digital therapeutics software-as-a-service platform, for $16 million in cash and equity.
The RMDY Health platform is used by the pharmaceutical indusry, payers, medical technology 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’s services are intended to bridge 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.
The 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, 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, 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 systems 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 percent 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,” said RMDY Health CEO and co-founder 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 percent of RMDY Health, its shareholders will receive $8 million in cash and $8 million in equity when the transaction closes, which is estimated to be within the next 30 days. 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. Its New York headquarters personnel will use the OptimizeRx New Jersey offices.
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.