GoodRX shares sink after CVS unveils new pharmacy reimbursement program

GoodRx Holdings

05/12/2023 18:28

** Shares in digital healthcare platform GoodRX Holdings Inc
 GDRX.O  down 7.6% at $6.01 after CVS Health  CVS.N  announced a
plan to shift to fixed rates for reimbursements from pharmacy
benefit managers and insurers, to boost transparency amid
scrutiny on high drug prices
    ** GDRX offers branded, generic medications, price
comparisons to help customers save on prescription drugs
    ** Citi analyst Daniel Grosslight sees plan as a headwind
for GDRX as it is "unlikely to beat" CVS on prices, sees it 
impacting GDRX Integrated Savings Program as it will eliminate 
pricing variation at CVS retail pharmacies
    ** But Grosslight writes that the risks are "manageable for
GDRX as this is only applicable to CVS retail locations"
    ** GDRX volume more than 10-day moving average, Tuesday's
trading price compares with $6 median PT for GDRX as per LSEG,
which shows 19 ratings: 4 'strong buy,' 3 'buy' and 12 'hold'
    ** YTD the stock is up ~29%
    ** CVS shares up about 4% on the session but down ~24% YTD

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))