On Wednesday, GoodRx (NASDAQ:GDRX) went public at $ 33 a share. After a nice pop on its opening day, it pulled back a bit on Thursday, and as of early afternoon Friday, shares are trading hands around $ 49. At that price, the company is valued around $ 19 billion. That gives GoodRx a greater market cap than virtual healthcare specialist Teladoc Health (NYSE:TDOC), which is worth about $ 18 billion.
Right now, these two companies’ core businesses are not in direct competition. Teladoc helps connect people to a doctor via video chat. GoodRx primarily provides an online platform that allows people to comparison shop for prescription drugs. Can GoodRx leverage that platform to compete with Teladoc? Maybe.
After all, 17 million people use GoodRx every month to seek out the best prices for their drug prescriptions. The company says that GoodRx has helped Americans save $ 20 billion since its founding in 2011. That’s a lot of happy people!
When it comes to helping people find doctors, too, GoodRx seems to be taking major steps in that direction. On its website, the company already has a tool that allows folks to search for doctors using many telehealth services that have partnered with it (including Teladoc Health). And GoodRx also acquired HeyDoctor, a small telehealth provider that is a competitor with Teladoc.
HeyDoctor’s offerings are limited. On the GoodRx website, for example, the subsidiary apparently has no pediatric doctors in California, nor any mental health providers. It doesn’t even provide general consultation in the state. But it will do a coronavirus assessment and handle prescription refills.
Is this company a danger to Teladoc? Not yet, but maybe one day.