Dive Brief:
- GoodRx co-CEOs Trevor Bezdek and Doug Hirsch are stepping down as leaders of the digital health company, according to a Tuesday filing with the Securities and Exchange Commission.
- Scott Wagner, an investor and adviser to tech companies, will serve as interim CEO, effective immediately. GoodRx will look for a permanent CEO, according to the filing.
- Bezdek will become chairman of the board, while Hirsch will become chief mission officer.
Dive Insight:
Bezdek and Hirsch founded GoodRx in 2011 before taking the California-based company public in 2020. GoodRx, which offers prescription drug discounts, telehealth visits and other health services through a digital health platform, has struggled in the past few years as competition grows in the drug pricing space. Its stock has fallen from a peak of more than $56 a share in February 2021 to $5.48 as of Tuesday’s close.
GoodRx reported a net loss of $32.8 million in 2022, up from its net loss of $25.3 million in 2021. Revenue increased only slightly year over year, from $745 million in 2021 to $766 million in 2022.
GoodRx was one of a number of digital health companies that elected to lay off employees last year as its finances strained, announcing in September it planned to eliminate 16% of its workforce.
The company has also faced heightened scrutiny from federal regulators. Earlier this year, the Federal Trade Commission fined GoodRx $1.5 million for allegedly sharing users’ sensitive health information with advertisers. The FTC also banned GoodRx from sharing consumers’ health data with third parties without consent, among other stipulations.
Incoming interim CEO Wagner’s most recent C-suite role was CEO of internet domain registrar GoDaddy, from 2017 to 2019. Prior to joining GoDaddy, Wagner was a partner at investment company KKR for more than a decade. Wagner currently serves on the board of a number of tech companies, including online fundraising platform GoFundMe, according to his LinkedIn.
As chief mission officer, Hirsch will work with healthcare industry partners like providers and pharmaceutical companies on GoodRx offerings, according to a release on the transition. Bezdek will direct GoodRx’s strategies and partnerships as chairman of the board.
“I am confident that Scott’s fresh perspective and business acumen will build on our legacy and take us to new heights,” Bezdek said in a statement. “We look forward to updating investors further on our May 10 earnings call.”
