Good News for GoodRx's IPO: Drug Prices Are Rising Fast
GoodRx (NASDAQ: GDRX) had its initial public offering (IPO) today at $33, substantially higher than the expected range of $24 to $28 per share. After trading started, shares jumped as high as $49.57.
The healthcare company acts as an intermediary between patients and pharmacy benefits managers (PBMs), which are tasked by health insurers and self-insured employers to lower the costs of prescription drugs. GoodRx's mobile app helps the patient find the pharmacy with the best price that is negotiated by GoodRx, and then GoodRx makes money taking either a percentage of the fees that the PBM earns for reducing prescription drug costs or a fixed payment per transaction.
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Source Fool.com
