How GoodRx Actually Makes Money: PBMs, Cash Prices, and Pharmacy Contracts, With Ge Bai, PhD, CPA (EP522)
Summary
This episode explains GoodRx’s revenue model, revealing it earns fees from PBMs for directing cash-pay patients to pharmacies. Host Stacey and guest G. Bai detail how GoodRx exploits high pharmacy list prices and PBM contracts to monetize this market dysfunction. The discussion also covers recent industry shifts, including new competitors like Mark Cuban Cost Plus Drugs and the rise of GLP-1s.
Topics discussed
Listener question: How does GoodRx make money?
Podcast support and newsletter promotion
The dysfunction in pharmacy supply chains
Introduction of Dr. G. Bai and sponsors
GoodRx as a pricing platform, not a pharmacy
How PBMs set cash prices for GoodRx users
GoodRx's revenue model via PBM fees
Pharmacies' lack of negotiation power
Market evolution: GLP-1s, data sales, and competitors
Mark Cuban endorsement and closing
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