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. Image source: Getty Images. The good news for GoodRx is that drug prices are expanding. According to the company, 67 drugs increased their costs in July by an average of 3.1%. While that's bad for consumers, it helps the company on both sides of the equation: With higher prices, more patients will be driven to use GoodRx to save money on their prescriptions, and revenue that's calculated as a percentage of the overall cost will be larger with the increased cost of prescription drugs. GoodRx is expanding beyond its business of lowering prescription drug costs. For example, it launched HeyDoctor, a telemedicine offering that competes with Teladoc Health (NYSE: TDOC). But in the first half of the year, 91% of GoodRx's revenue still came from prescription transaction fees, and Navitus, MedImpact, and Cigna's (NYSE: CI) Express Scripts each accounted for more than 10% of total revenue, so the prescription drug business is still what investors should largely be focused on. 10 stocks we like better than GoodRxWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and GoodRx wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Brian Orelli, PhD has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Teladoc Health. The Motley Fool has a disclosure policy.Source