GoodRx, an online pharmacy platform for low-cost prescriptions and price comparisons, filed SEC documents seeking to go public on Nasdaq Friday. 

Founded in 2011, GoodRx made its name with a platform and mobile app that lets self-paying customers compare medication prices and discounts. Users can bring a printed or digital coupon to major pharmacies when ordering their prescriptions. The platform also sells ad space. 

More recently, it jumped into the telemedicine space after buying HeyDoctor. It now has a virtual visit option, which allows patients to tap into its in-house service or connect with a partner provider. 

The SEC filing has revealed that the California-based company is in good financial shape. Ahead of this IPO the company is boasting of $55 million in net income in the first half of 2020, which is up from $31 million in the first half of 2019.  

The company’s revenue also grew by 48% in the first half of 2020 totaling $257 million, which is up from the $173 million raked in the first half of 2019. The filing also notes that its compound annual growth rate is 57% since 2016. 

WHY IT MATTERS 

This year we’ve seen a slew of digital health companies go public in 2019 and 2020. However, GoodRx is a standout because of its profitability, which hasn’t always been an attribute of digital health IPOs. Going forward the company is predicting a large market opportunity as well. 

In fact, in the SEC filing the company is estimating that its total addressable market is approximately $800 billion. The company includes prescription medication opportunity, pharmaceutical manufacture opportunity and telehealth opportunity.  

THE LARGER TREND 

Since the beginning of August rumors circulated that the company was looking to go public. 

Even before the coronavirus pushed the dial on telemedicine, GoodRx took bets on the tech. In September of 2019 it launched GoodRx Care Powered by HeyDoctor, which it positioned as a care tool that will allow patients to see a board-certified clinician on the cheap – stating that “most visits” are about $20. Its services include lab testing, prescription refills and treatment for acute medical conditions. 

However, the SEC filing reveals that the bulk of its business is in its prescription offerings. Over the last few years digital has changed the prescription medication space. Digital pharmacies are on the rise. In 2018 Amazon purchased virtual pharmacy PillPack, which it has since rebranded to PillPack by Amazon Pharmacy. 

Others in the digital pharmacy space include Capsule, which landed $200 million in new funding in September – only a year after its $50 million Series B round – and Genius Rx, which just launched this summer.