White Brook Capital, LLC on OptimizeRx Corporation
Thesis
OptimizeRx enables pharmaceutical companies to reach physicians through prescribing software and is trading at a valuation White Brook views as depressed by a temporary spending downturn. Policy uncertainty under most-favored-nation drug pricing caused customers to reduce budgets and contract terms, yet management maintained its profit forecast and refinanced debt more cheaply. Investments in programmatic advertising, including Trade Desk compatibility, should improve monetization of available inventory from the fourth quarter. White Brook expects a better 2027 and considers the current valuation of roughly seven times guided 2026 adjusted EBITDA attractive relative to recovery potential.
“We expect 2027 to be better.”
Key risks
- Most-favored-nation drug pricing and tariffs may suppress pharmaceutical customer spending longer than expected.
- A major client has already stopped buying and other customers are signing shorter contracts.
- Programmatic advertising improvements may not achieve the expected monetization gains.