👨‍⚕️ GoodRx Rallies over 50% on IPO day

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Market Snapshot 📈

S&P 500 (Wednesday Close) 3,236.92 −78.65 (2.37%)

NASDAQ (Wednesday Close) 10,632.98 −330.65 (3.02%)

FTSE 100 (5 PM IST) 5883.67 -15.59 (0.26%)

NIFTY 50 (Today's Close) 10,805.55 −326.30 (2.93%)

USDINR (5 PM IST) 73.52 (1 Year +3.68%)

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Just What the Doctor Ordered! – GoodRx Stock Rallies over 50% after IPO

GoodRX raised its listing price by 18% to tap into the prevailing IPO euphoria, and the stock went up a further 53% after listing!

What is Happening? GoodRx Holdings sold over 34.6M shares at $33, well above the $24 to $28 price range it had indicated. The company raised $1.14B at a valuation of $12.67B. It also concurrently sold $100M Class A stock in a private placement to existing PE investor Silver Lake Partners. Silver Lake had first invested in GoodRx in mid-2018 for about a third of the company in equity, valuing it at $2.8B. Financial investors like Idea Men, Spectrum, Francisco Partners, and Silver Lake control over 90% of the voting rights in GoodRx. 

Launched in 2011, GoodRx has been helping US consumers shop for prescription medication at lower prices than they’d otherwise find in the pharmacy. It offers monthly membership programs and its coupon codes are accepted at more than 70,000 pharmacies. The company takes a percentage of the transaction when the consumers use its drug discount cards.

GoodRx estimates it helped 18M people pay for prescriptions they otherwise wouldn’t have been able to afford, saving them $20B in the process. In 2019, the company acquired HeyDoctor, a telehealth provider, for $14.3M, and launched its telehealth marketplace this year. This value-added service gives consumers access to medically appropriate advice for treating common health conditions.

For the first half of the year, GoodRx’s revenue grew 48% to $256.7M and net income was up 75% to $54.7M compared to a year ago.

Market Reaction: GoodRx stock closed 53.03% higher at $50.50

GoodRx Snapshot 📈

GDRX $50.50 +17.50 (+53.03%)

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Newsworthy 📰

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Later Today 🕒

• 6.00 PM IST: Initial jobless claims (regular state program, SA)

• 6.00 PM IST: Initial jobless claims (federal & state, NSA)

• 6.00 PM IST: Continuing jobless claims (federal & state, NSA)

• 7.30 PM IST New home sales (SAAR)

• Before Market Open - Accenture Plc (ACN) earnings

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Fun Fact of The Day 🌞

Movie trailers were originally shown after the movie, which is why they were called “trailers”.

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