Digital Pharmacy GoodRx Raises $1.1 Billion in IPO

GoodRx, an online pharmacy platform that helps consumers compare medication prices and discounts, raised $1.1 billion in its initial public offering. The company sold 34.6 million shares of its stock at $33 per share.

The GoodRx platform aggregates and analyzes pricing data from various sources, including pharmaceutical manufacturers, wholesalers, pharmacy benefit managers, and pharmacies.

“As much as we have accomplished in the past decade, we recognize that there is a tremendous amount of work – and opportunity – ahead of us. As a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford,” GoodRx co-CEOs Doug Hirsch and Trevor Bezdek wrote in a blog post.

According to the company, its revenue grew 48% in the first half of 2020 to $257 million, up from $173 million in the first half of 2019. The company has been consistently profitable since 2016. It reported a net income of $55 million in the first half of 2020, compared to $31 million in the first half of 2019.

The number of monthly active consumers has increased from 1.3 million for the first quarter of 2017 to 4.4 million for the second quarter of 2020, a 30% increase YoY, the company said.

GoodRx also expanded into the telehealth market through the acquisition of HeyDoctor in 2019. The company competes with companies that provide savings on prescriptions and companies that offer telehealth services (such as Teladoc, Amwell, MDLIVE, and Doctor on Demand, that offer telehealth services on behalf of employers and insurance plans), and advertising and market access for pharmaceutical manufacturers.

Other digital health IPO news

Recently, Amwell filed with SEC for an initial public offering and announced a $100 million strategic investment from Google’s cloud division. Google’s strategic investment will be a concurrent private placement at the IPO price. Hims, a telemedicine company that sells wellness and healthcare products, is in talks to go public through a merger with blank-check company Oaktree Acquisition Corp.

Specialists On Call (dba SOC Telemed), a telemedicine technology provider, agreed to be acquired and taken public by Healthcare Merger Corporation, a special purpose acquisition company, for an initial enterprise value of approximately $720 million. Accolade, a startup that helps workers navigate their health benefits and dealings with insurance companies, has hired banks including Goldman Sachs and Morgan Stanley to advise ahead of a possible initial public offering.

Image Credit: GoodRx