On Friday, GoodRx filed its Form S-1 in preparation for going public. Link below.
The company is insanely profitable. Its adjusted net income—earnings before interest, taxes, depreciation, and amortization (EBITDA)—is an astonishing 40%.
Below, I provide my overview of how our crazy drug channel system enables GoodRx’s good fortune. You will admire the GoodRx management team’s business savvy in building a company that lowers out-of-pocket costs for consumers. But you will also wonder whether this business perpetuates a broken pharmacy drug pricing model.
P.S. This article updates and expands on the comments I posted to @DrugChannels on Friday evening.
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