GoodRx helps people afford drugs. But is it improving health care or profiting off a broken system? It's no secret that the U.S. health care system doesn't work very well, nor that we, as a country, spend too much on prescription drugs. And yet, for years, these have been sorry, but intractable truths of American existence. The trajectory of things seems a foregone conclusion: more costly, more complicated.
These dynamics are what make the story of GoodRx, the Santa Monica-based drug discount company, such a fascinating case study. Just 11 years old, the company, which claims to have saved Americans more than $25 billion on prescription medications, currently enjoys a market value of $15.8 billion after going public last fall. It took in $550.7 million in revenue in 2020, 42% more than the previous (non-pandemic) year. Again, that's billions of capital invested in—and millions of dollar made by—a business that helps people afford their prescription meds. That alone tells you how broken the system is.
But what's really striking about GoodRx is that it has found a path to both handsomely profit off America's profoundly dysfunctional drug marketplace, and in a meaningful way, to help consumers navigate it. Without a doubt, GoodRx has helped people afford medications—a good that goes beyond mere savings, by keeping them healthy, productive, and from having to seek out more expensive care. And, incredibly given the industry, they managed to develop a product and service that people love to use.
But GoodRx's business model is as complicated as the system it is built around, and with a closer look, one does wonder if the company is more of a participant in the broken system—perpetuating some of its worst features—than a solution to it. This email was sent to acozocom.news01@blogger.com Unsubscribe from these messages here. Fortune Media (USA) Corporation 40 Fulton Street New York, NY 10038 |
Sunday, May 2, 2021
Is GoodRx improving health care or profiting off a broken system?
Wednesday, April 28, 2021
Can Biden bring manufacturing back to the U.S.?
COVID exposed global supply-chain flaws. Can Biden bring manufacturing back to the U.S.?
Nearly 5 million net manufacturing jobs have disappeared since 1997, according to the Economic Policy Institute—roughly one out of every four. Though automation has played a dominant role in those job losses, critics also blame free-trade policies such as the 1993 North American Free Trade Agreement. The decline of American manufacturing jobs has helped shrink the middle class and worsen U.S. income inequality. Political scientists, moreover, have found strong links between the loss of those good jobs and the rise of political extremism in the U.S.
But what will it take to make this a reality? Huge federal pandemic spending has given some companies their first bit of runway to return medical manufacturing to the U.S., but long-term reshoring success will likely depend on serious reform to U.S. national trade and industrial policies. The good news is that if such efforts succeed, they will create more than just manufacturing jobs. This email was sent to acozocom.news01@blogger.com Unsubscribe from these messages here. Fortune Media (USA) Corporation 40 Fulton Street New York, NY 10038 |
Monday, April 26, 2021
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Saturday, April 24, 2021
The Supreme ‘spark’
The Supreme 'spark': How the streetwear legend could shape the future of VF
M&A is the very foundation of portfolio companies like VF Corp, the owner of brands such as Vans, The North Face, and Timberland. But CEO Steve Rendle waited almost four years into his tenure to make his first blockbuster acquisition, searching for a buy that would have a transformative effect on the whole organization. He believes he found it in December, when the company inked a $2.1 billion deal—the largest in its history—to acquire streetwear label Supreme.
Known for its snarky, pop culture-referencing products and the snaking lines that appear outside its retail stores the day of its weekly "drops," the cult brand might seem like a strange fit for VF, a low-profile company based in Colorado. But Rendle is betting that the Supreme will punch above its weight (the streetwear label is about one-tenth the size of Vans), playing an outsized role in shaping VF's future and offering its new sister brands valuable lessons about how to thrive in today's retail landscape. Supreme excels at moving product at its own stores and online (shunning department stores), has a supercharged metabolism for launching new products, and has forged deep connections with its customers—all strengths Rendle would like to see in more of his company's brands.
Dealmaking often has a 'Hail Mary' aspect to it. And some retail watchers were quick to tag VF's Supreme acquisition a missed pass. But Rendle is confident that his bet on modernizing the successful but 121-year-old company will ultimately prove the doubters wrong. This email was sent to acozocom.news01@blogger.com Unsubscribe from these messages here. Fortune Media (USA) Corporation 40 Fulton Street New York, NY 10038 |
Monday, April 19, 2021
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Tuesday, April 13, 2021
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Friday, April 9, 2021
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