TLDR
- GoodRx stock jumped 35% after announcing partnership with Novo Nordisk to offer Ozempic and Wegovy for $499 monthly
- Novo Nordisk is making Ozempic available directly to consumers for the first time through its own platforms and GoodRx
- The medications are now available at over 70,000 U.S. pharmacies for self-paying patients
- Wall Street analysts set average price target of $5.32 with potential 11.75% upside from current levels
- GuruFocus estimates fair value at $7.04, suggesting 47.9% upside potential
GoodRx Holdings stock soared 35% Monday following news of a partnership with Danish pharmaceutical giant Novo Nordisk. The collaboration centers on making popular weight-loss drugs Ozempic and Wegovy available for $499 per month.
The deal marks a first for Novo Nordisk, which will offer Ozempic directly to consumers through its own platforms. Previously, the diabetes medication turned weight-loss treatment required traditional prescription channels.
GoodRx will facilitate access through its prescription savings card program. Self-paying patients can now obtain both medications at more than 70,000 pharmacies across the United States.
The partnership addresses a key barrier for many patients seeking these treatments. Insurance coverage for weight-loss medications remains limited, leaving many to pay full retail prices that can exceed $1,000 monthly.
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.
Market Response and Analyst Outlook
Wall Street analysts maintain optimistic views on GoodRx following the announcement. Thirteen leading analysts set an average price target of $5.32 for the stock.
This target represents potential upside of 11.75% from current trading levels around $4.76. Analyst price targets range from a low of $3.40 to a high of $7.00.
Brokerage firms rate GoodRx with an average recommendation score of 2.4. This indicates an “Outperform” status on the typical 1-5 rating scale where 1 represents Strong Buy.
Valuation Analysis
GuruFocus provides a more bullish assessment with its GF Value estimate. The research firm calculates fair value at $7.04 per share for the coming year.
This valuation suggests upside potential of 47.9% from current stock prices. GuruFocus bases its GF Value on historical trading multiples, past business growth, and future performance projections.
The collaboration expands GoodRx’s addressable market in the growing GLP-1 medication space. These drugs have seen explosive demand as both diabetes treatments and weight-loss solutions.
The $499 monthly price point positions the medications at a discount to typical retail prices. This pricing strategy could drive higher volume through GoodRx’s platform.
Novo Nordisk benefits by reaching cash-paying customers who might otherwise go without treatment. The partnership provides a new distribution channel outside traditional insurance networks.
GoodRx stock had struggled in recent months before Monday’s surge. The company has faced increased competition in the prescription discount space from rivals and pharmacy chains.
The collaboration represents a strategic shift toward direct partnerships with pharmaceutical manufacturers. This approach could differentiate GoodRx from competitors focused solely on generic discount programs.
Both Ozempic and Wegovy contain the same active ingredient, semaglutide, but carry different FDA approvals. Ozempic targets diabetes treatment while Wegovy specifically addresses chronic weight management.
The partnership launches immediately with availability at participating pharmacies nationwide. Patients can access the medications through GoodRx’s existing digital platform and mobile application.
