GoodRx Made Its Big Market Debut This Week

Discount prescription drug locator company GoodRx made its Wall Street debut on Wednesday.

The stock began trading at $46 a share, up from its IPO of $33 a share. Shares closed up 53% on their first day of trading.

The digital health company, which offers prescription drug coupons to customers, has been consistently profitable since 2016. GoodRx said it earned $55 million in profit for first half of 2020, up from $31 million in the first half of 2019. Revenues for the first half of 2020 were $257 million, up from $173 million in the first half of 2019. In 2019, it pulled in $66 million in profit on $388 million in revenue.

Founded in 2011 by Facebook veteran Doug Hirsch and software entrepreneur Trevor Bezdek, GoodRx offers a free list of discount cards and coupons to users so they can cut down costs of their prescription medication. The company collects fees from the pharmacy benefits managers it works with.

“GoodRx is a great story. It’s got fabulous financials, so, of course, yeah the deal was red-hot,” remarked Jim Cramer on “Mad Money.” “I think you can actually nibble at GoodRx tomorrow if we have a pullback,” he added. “I actually would like it to come back to the thirties, ideally, down more than $10 from here, and that’s not unrealistic when you see how horrible the market is.”

“Republicans hate interfering with the free market and Democrats are afraid to govern, so if you want relief from sky-high drug prices, the only help you’re going to get is from GoodRx and other companies like it,” said Cramer, calling the company the “unrivaled leader” in the space.

GoodRx ranked No. 20 on this year’s CNBC Disruptor 50 list.

Shares trade under the symbol “GDRX” on the NASDAQ.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.