GoodRx Stock Rises 29% Following Novo Nordisk Partnership

GoodRx Holdings Inc (GDRX) stock surged 29% due to a new partnership with Novo Nordisk. Analysts predict an average target price of $5.32, offering a potential upside of 11.75%. GuruFocus predicts a GF Value of $7.04, indicating a possible upside of 47.9%.

GoodRx Holdings Inc. (GDRX) stock surged 29% on Monday following the announcement of a new partnership with Novo Nordisk. The collaboration centers on making popular weight-loss drugs Ozempic and Wegovy available for $499 per month to self-paying customers [2].

The partnership marks a significant milestone for Novo Nordisk, which will offer Ozempic directly to consumers for the first time through its own platforms and GoodRx. Both medications are now available at over 70,000 U.S. pharmacies for self-paying patients [2]. This initiative aims to address a key barrier for many patients seeking these treatments, as insurance coverage for weight-loss medications remains limited, leaving many to pay full retail prices that can exceed $1,000 monthly [1].

GoodRx will facilitate access to the medications through its prescription savings card program. The $499 monthly price point positions the medications at a discount to typical retail prices, which could drive higher volume through GoodRx’s platform [2]. This strategic shift toward direct partnerships with pharmaceutical manufacturers could differentiate GoodRx from competitors focused solely on generic discount programs.

The collaboration comes as GoodRx has seen surging demand for the GLP-1 products, with 17 million inquiries on its site for the drugs in the past year, up 22% from the year prior [1]. The sale of Ozempic through GoodRx marks the first time the diabetes drug is being sold at a cash price [1].

Novo Nordisk shares also gained ground, rising 4.9% in U.S. trading. The Danish company received additional positive news as the FDA approved Wegovy for treating a serious form of liver disease [2].

Market response and analyst outlook have been positive. Thirteen leading analysts set an average price target of $5.32 for GoodRx stock, representing a potential upside of 11.75% from current trading levels around $4.76 [2]. GuruFocus provides a more bullish assessment, calculating the GF Value at $7.04 per share for the coming year, indicating a possible upside of 47.9% [2].

The partnership launches immediately with availability at participating pharmacies nationwide. Patients can access the medications through GoodRx’s existing digital platform and mobile application [3].

References:
[1] https://finance.yahoo.com/news/goodrx-stock-soars-after-striking-deal-to-sell-novo-nordisks-glp-1s-for-499month-130021070.html
[2] https://parameter.io/goodrx-holdings-gdrx-stock-shares-jump-35-on-novo-nordisk-partnership/
[3] https://www.gurufocus.com/news/3067064/goodrx-announces-collaboration-with-novo-nordisk-to-expand-access-to-ozempic-and-wegovy-for-499permonth-gdrx-stock-news