Digital Health Tech OptimizeRx's Acquisition of Medicx Health To Boost Earnings And Market Potential: Analyst

OptimizeRx Corp OPRX agreed to acquire Scottsdale, Arizona-based Healthy Offers Inc, dba Medicx Health, for $95 million.

Medicx Health is a healthcare consumer-focused omnichannel marketing and analytics company. 

Certain members of Medicx's management plan to invest approximately $10.5 million of their proceeds into the company's common stock. 

The deal is expected to close in Q4 2023.

As part of OptimizeRx, Medicx technology and analytics solutions are expected to expand OptimizeRx's addressable footprint in life science commercial digital budgets, a business area that is forecasted to grow 15% to 20% per year.

OptimizeRx says Medicx is expected to contribute meaningfully to revenue, revenue growth, EBITDA, and EPS. 

The transaction is expected to be immediately accretive to earnings and, on a combined basis, will have a revenue run-rate approaching $100 million.

OptimizeRx will have approximately $12.5 million in cash and short-term equivalents after the transaction.

For Q3, OptimizeRx expects revenue between $15.2 million-$15.5 million versus the consensus of $14.26 million and adjusted net income between $0.6 million and $1.0 million. 

William Blair highlights that this transaction significantly expands OptimizeRx's Total Addressable Market potential and presents substantial cross-selling opportunities for the merged entity. 

Management has indicated that the combined company will establish relationships with approximately 300 pharmaceutical brands, with only a modest 20% overlap in their customer base. 

This, in turn, positions the combined company to unlock substantial value for pharmaceutical marketers seeking to integrate data-driven strategies that bridge HCP and consumer marketing approaches.

Price Action: OPRX shares are up 19.0% at $8.51 on the last check Thursday.