On Thursday, TD Cowen maintained its positive stance on GoodRx Holdings Inc. (NASDAQ:GDRX), reiterating a Buy rating and a $16.00 price target for the company's stock. The endorsement follows GoodRx's recent announcement that it will offer a biosimilar to Humira, a popular anti-inflammatory medication, at a significantly reduced price on its platform.
GoodRx disclosed that the biosimilar, produced by Boehringer Ingelheim, would be available for $550 per two-pack. This price represents a substantial 92% discount compared to the list price of Humira. The discount will be exclusive to the GoodRx platform, which is known for providing consumers with lower-cost options for medications.
The move by GoodRx is seen as a strategic enhancement of its pricing platform, which supports brand manufacturers. According to TD Cowen, this development is a significant and often overlooked opportunity for growth within the company's business model. The firm's analyst expressed optimism about GoodRx's initiative to collaborate with manufacturers in providing affordable medication options.
GoodRx's decision to offer a low-cost alternative to Humira could have a positive impact on its market position. Humira, which is used to treat various inflammatory conditions, has been one of the best-selling prescription drugs worldwide. The availability of a cheaper biosimilar could attract a significant number of consumers to GoodRx's platform, potentially increasing the company's user base and revenues.
The company's stock price target remains unchanged at $16.00, reflecting the analyst's confidence in GoodRx's continued performance and potential for growth. The company's efforts to expand its services and provide cost-effective medication options are key factors in the analyst's positive outlook.
In other recent news, GoodRx Holdings Inc. has embarked on a series of strategic initiatives, including a partnership with Boehringer Ingelheim to provide low-cost biosimilar Adalimumab-adbm. The medication, aimed at treating various chronic inflammatory diseases, is now available at over 70,000 retail pharmacies nationwide. This initiative, which offers the biosimilar at a significant discount, underscores GoodRx's commitment to making critical treatments more accessible.
In addition to this, GoodRx's upcoming quarterly report is expected to underscore the growth of Monthly Active Consumers (MACs), with RBC Capital forecasting a 9% year-over-year growth. This is anticipated to support the company's mid-single-digit percentage revenue growth. Analyst firms including TD Cowen, Morgan Stanley, and Barclays have shown confidence in GoodRx's direction, with various upgrades and price target adjustments.
Furthermore, GoodRx has announced the appointment of tech veteran Simon Patterson to its Board of Directors. The company's financial targets for 2026 include over $1 billion in revenue and an adjusted EBITDA margin of 35%+, reflecting a confident outlook on its growth trajectory. These are just some of the recent developments that highlight GoodRx's continuous efforts to expand its market presence and diversify its revenue streams.
InvestingPro Insights
In light of TD Cowen's optimistic outlook on GoodRx Holdings Inc. (NASDAQ:GDRX), InvestingPro data and tips offer additional insights for investors considering the stock. GoodRx's aggressive move to offer a biosimilar to Humira at a steep discount is complemented by a notable gross profit margin of 92.38% over the last twelve months as of Q1 2024, which underscores the company's ability to maintain profitability despite offering competitive pricing. Furthermore, with a market capitalization of $3.01 billion and a 3-month price total return of 22.59%, GoodRx demonstrates a robust market presence and a strong short-term performance.
Among the InvestingPro Tips, two particularly stand out in the context of the article. First, GoodRx's management has been actively engaging in share buybacks, which could indicate confidence in the company's future and a commitment to enhancing shareholder value. Second, analysts predict that the company will be profitable this year, aligning with TD Cowen's positive stance and the potential growth from the new biosimilar offering.
Investors interested in deeper analysis and additional tips can explore more on GoodRx through InvestingPro, which lists 13 additional tips for an informed investment decision. For those looking to take advantage of this comprehensive tool, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.