GoodRx Bounces 53% in Nasdaq IPO

It’s been consistently profitable since 2016

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

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