What happened and why The pitch. Price comparison is for drugs. The result. A $1bn IPO and a 50%+ stock jump on day one. GoodRx (+48.56%), the price comparison for 'prescription-drugs' (to be clear) at pharmacies, treated investors to a massive pick-me-up with its first day of trading on Tuesday. GoodRx, which operates a telemedicine site and an online marketplace for discounts on prescription drugs, fizzed 53% on its trading debut after outgunning investment targets for its IPO.For the deep pockets... GoodRx raised over $1B in its IPO from institutional investors at $33 a share.We just had to be quick... The stock jumped 53% on Wednesday straight after the company landed on the Nasdaq... with the shares now trading at $48. The fast-growing Santa Monica-based health-tech company was founded 9 years ago with the mission to make drug prices more transparent. At first, it enabled consumers to shop for the best prices on prescription drugs, which varies widely pharmacy-to-pharmacy in the land of opportunity. Since then, GoodRx have cottoned on to some bright ideas with some sparkling timing... 👩💻 Telemedicine, ey...? The group expanded into multiple sectors of healthcare, including a telemedicine marketplace feature where patients can compare the costs of different telemedicine providers... but why compare and when you can control...💊 A slice of the pie... Just before the pandemic, GoodRx ditched the pure-comparison play and acquired telemedicine provider HeyDoctor - giving it a slice of the internet-based medicare market. And you guessed it.. demand for Telehealth has surged during the pandemic, with patients forced to seek alternatives to the trips to a docs when possible. Despite the outlays and investments, the pandemic served up a big winner in GoodRx. Going against the grain, GoodRx raked in a $55 million profit for the first half of this year - up from $31 in 2019. | The Takeaway Scale-up... GoodRx is the birth-child of Facebook veteran Doug Hirsch and software entrepreneur Trevor Bezdek - who are now Co-CEOs. And Co-chief, Hirsch, said the company plans to use the IPO proceeds to get its product to more people as they get to grips with demand... Whether the telehealth boom will continue when more things reopen is still a question.
