Yesterday, prescription drug pricing app GoodRx went public on the Nasdaq under the ticker GDRX. It opened at $46/share, well above its $33 IPO price, and closed the day up 53% for a market cap of $19.4 billion.
The backstory: You know how medications sometimes cost $6 but other times cost $7,439? GoodRx wants to help by offering coupons for prescription drugs and helping you comparison-shop.
- Because here’s the thing about medicine…it makes pain/sickness/eczema go away. So most people don’t hesitate to pay the amount they’re charged and often don’t know they have options.
Business-wise, GoodRx is in decent shape. It’s been consistently profitable since 2016, earning revenue by collecting fees from the pharmacy benefit managers it works with. It made almost $55 million in profit in H1 of 2020, up 75% from the same period last year…but by the cofounders’ own admission, healthcare reform would wipe it off the map.
Via Morning Brew