One week after GoodRx Holdings Inc. filed its initial public offering (IPO), the discount prescription marketplace priced its stock at $33 per share, above its target to sell $1.1 billion in stock.
In its filing with the Securities and Exchange Commission (SEC), the Santa Monica, California-based startup said its selling price would be in the $24-$28 per share range, giving it an initial market cap of around $12.7 billion, Axios reported.
By Tuesday night (Sept. 22) the price comparison app for prescription drugs had raised $1.14 billion in its IPO, the news outlet reported. Starting Wednesday (Sept. 23), the company will be listed on the Nasdaq under ticker GDRX.
From January through June, the company reported nearly $55 million of net income and $257 million in revenue, making it one of the few profitable tech startups to go public this year, Axios reported.
“Lack of affordability in healthcare is a contributing reason why 20 percent to 30 percent of prescriptions are left at the pharmacy counter,” the company wrote in its SEC filing. “Our mission is to help Americans get the healthcare they need at a price they can afford. GoodRx was founded to solve the challenges that consumers face in understanding, accessing, and affording healthcare.”
Prior to the IPO, technology investor Silver Lake had a 35 percent ownership stake in GoodRx. The Silicon Valley-based company agreed to buy another $100 million of stock through the IPO. Other investors include Francisco Partners at 24 percent and Spectrum Equity at 15 percent, the news outlet reported.
“We try to make it simple for consumers,” he said. “We want to make it as straightforward and clear as possible. We literally have billions of prices in our database. The idea is to optimize the best prices for a given drug, depending on the location of the user.”
Founded in 2011, GoodRx gathers drug prices on more than 70,000 U.S. pharmacies for shoppers to compare and track drug prices, according to the company’s website. In addition, it offers discount coupons to consumers.
It makes money by charging fees to pharmacy benefits managers who partner with it. The company’s website is viewed by more than 10 million Americans who seek the lowest prices for prescription drugs, the company said.