California-based prescription drug tracking app GoodRX has been making drug prices transparent since 2011. It started primarily as a price comparison tool, ensuring customers would find the lowest available price for their medications. It expanded in September of 2019 with the acquisition of HeyDoctor, a telemedicine company that provides a platform for virtual care. GoodRX Helps, a philanthropic branch of the company, provides free medication for underserved populations and individuals who cannot afford necessary medications.
Recently, GoodRX started trading under the symbol “GDRX” on NASDAQ. The IPO price began at $33 per share and closed at $50.50 per share, up 53% from its initial offering and helping the company raise almost $1 billion. Its current valuation is $19.4 billion. GoodRX also sold $100 million in Class A stock to private equity firm Silver Lake, which had previously purchased 126 million Class B supervoting shares. Morgan Stanley, Goldman Sachs, JPMorgan, and Barclays participated as underwriters, and have access to 5.2 million additional shares.
The young company already has a strong history of profitability. It earned $55 million in the first half of 2020, a $31 million year-over-year increase. The coronavirus instigated a massive boom in demand for telehealth, as people wanted to avoid healthcare clinics and hospitals and connect with their providers online rather than face-to-face. Once vaccines and reliable treatment options hit the market, telehealth may experience a slight decline, but it will likely become the new normal for many people.
Regardless of telehealth’s peaks and troughs, people will always want to find a good deal on their prescriptions. “Our data suggests that approximately 20% of consumers who search for medications on GoodRx do not have a prescription at the time of their search,” wrote the company in the IPO they filed with the SEC. “Through HeyDoctor and the GoodRx Telehealth Marketplace, we can provide these and other consumers with a convenient and affordable way to receive a diagnosis and a prescription online, when medically appropriate.” Combining telehealth with prescription comparisons will give the company options and will likely ensure they remain flexible and profitable throughout changes in market trends.
