Prescription pricing startup GoodRx priced its anticipated IPO. The company could raise just shy of $1 billion in funding with the public offering. It will offer 23.4 million shares of its common stock, and selling shareholders will offer 11.2 million shares, priced between $24 and $28 per share.
GoodRx lets users look up the price of comparisons and negotiates cash pay discounts with pharmacy benefit managers. Currently, 4.9 million people use its app every month. Notably, it is one of the few tech companies going public this year that has actually been profitable.
In an amended prospectus filed on Monday, GoodRx disclosed that Silver Lake agreed to purchase $100 million of its class A common stock in a private placement.
It also shared that it will offer its co-founders Douglas Hirsch and Trevor Bezdek 24.6 million shares of stock, with an estimated value of $533.3 million. This includes an award tied to stock performance and a time-based award that will vest over four years.
Last year, GoodRx reported revenues of $388.2 million, up 55% from the prior year. In the first half of 2020, it brought in $257 million.
The company also reported a net income of $66.05 million last year, up 50% from 2018. For the first half of 2020, it reported $54.7 million in net income.
Most of those funds come from fees collected from PBMs when a consumer uses a GoodRx code to fill a prescription. The company also brings in funds from advertising from pharmaceutical manufacturers and telehealth revenue.
GoodRx has some competition when it comes to prescription price comparisons. For example, SingleCare also lets users look up prices and get coupons for discounts. But GoodRx hopes to differentiate itself from the rest with some of its newer features, including telehealth visits.
Last year, the company acquired telehealth platform HeyDoctor. In its updated prospectus, it disclosed a new acquisition: GoodRx bought Scriptcycle, which works with regional pharmacy chains to provide discount offerings, for $60.1 million.
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