OptimizeRx, a software company that enables digital health messaging between pharmas and providers, has announced plans to acquire RMDY Health, a SaaS platform designed for digital therapeutics, within the next 30 days.
According to the notice, RMDY shareholders will be receiving $8 million in cash and another $8 million in equity upon the deal’s closure. OptimizeRx said that additional details regarding the terms of the deal will soon be made available through an SEC filing as well as its own investor resources page.
"We welcome the RMDY team and their powerful SaaS platform to support our mission of improving medication adherence and care coordination," William Febbo, CEO of OptimizeRx, said in a statement. "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."
OptimizeRx’s platform integrates with EHRs and ePrescribing products to deliver direct messaging from pharmas to both providers and patients.
RMDY, meanwhile, builds white-labeled digital health programs and apps for health stakeholders such as payers, medical associations and medtech. Customers are provided with a dashboard and other monitoring tools, while consumers are provided access to approved digital treatments, devices and other products.
“DTx programs are widely considered highly effective, yet such solutions usually require expensive and complex implementations,” RMDY Health CEO and co-founder Dr. Amir Kishon said in a statement. “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.”
RMDY’s technology team will remain in Tel Aviv, Israel, while staff based in the U.S. will join OptimizeRx at its New Jersey headquarters. Febbo said in a statement that he anticipates the shared goals between each team to provide a “great cultural fit,” and that his company expects the acquisition “to be accretive within the first 18 months.”
WHAT’S THE IMPACT
OptimizeRx views the acquisition of RMDY’s team and technology as an opportunity to expand its messaging platform’s capabilities, as well as to reach a new client base beyond pharmas and providers.
“By adding RMDY Health’s complementary capabilities to our platform,” Febbo said, “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.”
And while OptimizeRx’s platform already integrates with EHRs and other systems, RMDY’s platform opens the door to a new wave of digital health products.
“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,” Kishon said.
THE LARGER TREND
OptimizeRx’s most recent acquisition comes roughly 11 months after another deal that saw the platform absorb CareSpeak Communications, a medication adherence company with a focus on care coordination messaging. That purchase was also focused on expanding the OptimizeRx platform’s capabilities, allowing the company to extend its messaging directly to patients.
2019 has so far been a bit light on digital health acquisitions, with a Rock Health report recapping the first half of the year projecting a 25% decline for the year when compared with 2018.