GoodRx Holdings Inc. shares opened trading at $46 after its $1.14 billion IPO priced at $33 per share. The CEO Doug Hirsch joined Yahoo Finance's On The Move to discuss the IPO.
JULIE HYMAN: Discount prescription drug site GoodRx is going public today, price of the IPO at $33 a share, raising about $772 million. That puts the value of the company, if I'm not mistaken, around $12.7 billion. Is that correct? We've got Doug Hirsch here, who's the CEO.
Congratulations on the IPO, Doug. So it seems as though the IPO market has been pretty hot, from what we have seen thus far this year. So when you were thinking about timing of when you were going to come to market, is it a decision you made after seeing some of these other IPOs come to market? Or was it something in the works already? And what are you going to use the proceeds for?
DOUG HIRSCH: You know, our lens as a company is a little bit different than, I think, most. We focus on how we can maximize our impact on Americans and how we can make sure we're there as our health system continues to fail folks who really just need, you know, quality care at an affordable price. And so our lens was really one of, hey, can we expand our offerings? Can we impact more people, especially now in COVID?
You know, we're all sitting here on Zooms, and obviously we have a health care crisis and an election coming up. We really just wanted to be prepared to be able to not only offer discounts on both prescriptions and medical care, but to continue to expand our business, and ultimately impact more people. We've saved Americans $20 billion, and I want to make that number way, way more.
ANJALEE KHEMLANI: Doug, it's Anjalee here. Good to see you again. I know that we've talked about, also, your foray into telemedicine and telehealth, which is also big right now. But all of this is stuff that you've achieved prior to going public. And with that change dynamics of who you're responsible to shifts, how do you plan on continuing to maintain and reach this goal that you've set while also answering to shareholders?
DOUG HIRSCH: Yeah, we had the fortune of being surrounded by good people from the beginning. You know, our investors are incredible. Francisco Partners, Spectrum Equity, Silver Lake are just-- they support our mission from the beginning, and we've been super focused on building both a successful company, as well as a company that maximizes its impact on Americans and makes sure that people get the care they need. So as I look into the future, I see lots more tools for us to be able to really increase that impact on people and to be a responsible business steward who makes sure that we perform as well.
ADAM SHAPIRO: I want to talk about the present, at least my present, because your platform, for instance, if I'm looking for Lipitor, right, I'm in that era of my life, I can price compare? I thought the secret deals that pharmacies have with drug manufacturers blocked me out. Do you have some in on that that helps me get the lower price if I should use the app?
DOUG HIRSCH: I also take that same cholesterol drug, so I feel your pain. And I can tell you that when I fill that cholesterol drug with my insurance here at GoodRx, it's about $180. But when I use GoodRx, it's like $6, right? And it's not that we have some secret bill. We actually don't set prices ourselves, but we expose consumers to the so many ways that they can save, right?
The reality is is there's tremendous levels of savings, but most people don't know. They assume that they have that insurance card in their pocket, they pull it out when they get to the pharmacy, and they're going to be OK. And that used to be the case. I'm old enough to remember back when I worked at Yahoo when that was the case.
But today, you're-- you're the victim of this complicated system that's pushing more and more of the cost of you. And so we're-- think of us as an information educational resource that's basically saying, hey, stop before you just pull out your insurance card. Look around. Understand what these products and services are going to cost, because there might be a better way, especially if you can't afford that cost. We just want people to get that care, and we want to fix the system so that we can ultimately all be healthier.
ANJALEE KHEMLANI: It's really an interesting time to sort of go into this public market. There's so much momentum around the types of services that you're-- that you're offering, as well as competition from some other entities. How do you see that playing out? Are you anticipating more competition as time goes on?
DOUG HIRSCH: You know, we're often asked about competition. And what's interesting, if you look at our-- you know, our marketing that we've done over the course of 10 years, and every time I talk about GoodRx, really our competition is people who just don't know any better, because this is a whole new way of thinking about your health care. We're trying to activate people and make them engaged, you know, folk who are making smart decisions about how they purchase their health care, just like they purchase their TVs, or their cars, or anything else.
And so, you know, think of us also as a marketplace. We're really just trying to gather the best ways for a consumer to save, and then present them to people in an unbiased way. And that's really what we do, and that's what we'll continue to do. And again, my only competition is just trying to get people to change their behavior because it's for their own good.
JULIE HYMAN: I have to ask, though, Doug, I mean, isn't your competition also Congress? Like, in an ideal world, you shouldn't have to exist, I mean, one could argue, right? We would all get these prices directly as-- as part of the system as it exists. So what is the risk that at some point Congress decides it's going to reinvent the prescription drug pricing system and puts you out of business?
DOUG HIRSCH: You know, one of the fun things about being an entrepreneur is how often you're told no. And when we started the company back in 2010, every expert we could find in pharmacy and health care told us we were wasting our time, because there was this thing coming out called The ACA, the Affordable Health Care Act, where every American was going to have free health care, and they never had to worry again. And here we are 10 years later, and the situation's so much worse.
And look, we support anything that brings more information and ultimately more savings and fair prices to consumers around health care. Sadly, we're not seeing that today. And you know, we're big fans at getting more information out there and helping people. And if our government steps in, fantastic. But until they do, we're going to be here to help people get the care they need at a price they can afford.
JULIE HYMAN: Doug Hirsch, GoodRx CEO. Thank you so much for your time. Appreciate it. And again, congrats on the IPO.