TherapeuticsMD, Inc. (NASDAQ: TXMD), saw its shares jump on entering into a definitive agreement to divest its vitaCare Prescription Services (vitaCare) business to GoodRx (NASDAQ: GDRX), a consumer-focused digital health-care platform.
VitaCare is a technology and services platform that helps patients navigate key access and adherence barriers for brand medications. Under the terms of the agreement, TXMD will receive $150 million in cash at closing, subject to customary adjustments, with up to an additional $7 million in cash consideration contingent upon vitaCare’s financial performance through 2023. The transaction is expected to close in the second quarter of 2022, subject to the satisfaction of customary closing conditions. TXMD will also enter into a long-term services agreement with vitaCare to continue to utilize the vitaCare platform.
"We are pleased to find a fitting home for vitaCare and are confident that GoodRx will expand on vitaCare’s track record of increasing patient access," said Hugh O’Dowd, Chief Executive Officer of TherapeuticsMD. "This transaction will allow TherapeuticsMD to focus on our core women’s health business and mission of empowering women of all ages through better healthcare, while at the same time delivering value for our stakeholders."
Therapeutics shares galloped nearly a dime, or 45.1%, to 30.80 cents.
Related Stories
