GoodRx Enters the Market With a Bang
Telemedicine platform provider GoodRx entered the market with a bang on Wednesday.
GoodRx Holdings Inc. (NASDAQ: GDRX) entered the market with a bang on Wednesday. The company originally priced its 34.6 million share initial public offering at $33 apiece, above the expected price range of $24 to $28. However, shares debuted at $46, well above the pricing.
This company provides Americans will health care services and prescriptions through its digital platform. Essentially, this platform connects consumers with affordable and convenient health care products and services. These include telehealth, mail-order prescriptions, doctor visits and lab tests.
The company boasted 4.4 million monthly active consumers and 15 million monthly visitors for the second quarter of 2020. There was roughly $20 billion of cumulative consumer savings generated for GoodRx consumers.
The gross merchandise value generated by the prescription offering, which accounts for the vast majority of GoodRx’s revenue, was $2.5 billion in 2019. The firm’s revenue has grown at a compound annual growth rate of 57% since 2016 and reached $388 million in 2019, up from $250 million in 2018.
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The company intends to use the net proceeds from this offering to grow the business and for general corporate purposes.
The underwriters for the offering were Morgan Stanley, Goldman Sachs, JPMorgan, Barclays, BofA Securities, Citigroup, Credit Suisse, RBC Capital Markets, UBS Investment Bank, Cowen, Deutsche Bank, Evercore ISI, Citizens Capital Markets, KKR, LionTree, Raymond James, SVB Leerink, Academy Securities, Loop Capital Markets, R. Seelaus and Ramirez.
GoodRx stock traded up about 50% at $49.40, in a range of $45.55 to $49.51 on the day. About 12 million shares had moved as of 12:45 p.m. Eastern.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
