GoodRx Holdings GDRX Given Buy Rating by Leerink Partners with $6 Price Target

Leerink Partners reiterates a Buy rating on GoodRx Holdings (GDRX) with a $6 price target. Analyst Michael Cherny cites the company's strategic advancements, including a recent agreement with Novo Nordisk, as a significant achievement for its manufacturer solutions segment. GoodRx Holdings offers a consumer-focused digital healthcare platform, providing free consumer access to medical provider consultations, reduced prices for medications, and extensive healthcare research and information.

GoodRx Holdings (GDRX) saw its shares surge 37% on Aug. 18 after announcing a deal with Novo Nordisk to offer significantly discounted Wegovy and Ozempic to self-paying customers. The deal has been well-received by investors and analysts alike, with Leerink Partners reiterating a Buy rating on the company with a $6 price target [1].

The partnership allows GoodRx to offer Wegovy and Ozempic at a fixed price of $499 per month, which is half the current self-pay price for Wegovy and about a third for Ozempic. This move is aimed at addressing the high demand for these GLP-1 medications, which have been driven by social media and celebrity endorsements. The deal represents a significant advancement for GoodRx's "manufacturer's solutions" division, which typically focuses on advertising discount programs for eligible consumers on the GoodRx platform [1].

GoodRx's Chief Executive Wendy Barnes highlighted the importance of this partnership in making innovative brand-name treatments more accessible. "Demand for GLP-1 medications is at an all-time high, but too many Americans still face barriers accessing them," Barnes said. "By partnering with Novo Nordisk, we’re taking a significant step forward in making these innovative brand-name treatments more accessible for millions of people who need them" [2].

Michael Cherney, a research analyst with Leerink Partners, noted that the deal is a win for GoodRx's manufacturer solutions segment. "GoodRx’s agreement with Novo Nordisk to offer Ozempic and Wegovy at a discounted cash price is a significant win for the manufacturer solutions segment," Cherney said [1].

While the share price jump was substantial, it was short-lived. GoodRx shares gave back roughly half the gain in the next two trading sessions, closing at $4.37 a share on Aug. 20. Despite this, the deal is seen as a strategic advancement that could drive long-term growth for the company.

GoodRx's platform offers more than just discounted medications; it provides free consumer access to medical provider consultations, reduced prices for medications, and extensive healthcare research and information. With the recent partnership and the company's continued expansion into new services like GoodRx for Pets and GoodRx Community Link, GoodRx is well-positioned to continue delivering value to both its customers and shareholders.

References:
[1] https://labusinessjournal.com/featured/goodrx-deal-well-received/
[2] https://www.mobihealthnews.com/news/goodrx-novo-nordisk-partner-offer-ozempic-wegovy