CVS CostVantage to lower value proposition offered by GoodRx, says Wells Fargo

Wells Fargo analyst Stan Berenshteyn tells investors in a research note that CVS CostVantage (CVS) should improve price transparency yield less price variance for consumers among generic drugs at its pharmacies, which will likely decrease the value proposition offered by GoodRx (GDRX) and other discount cards. The firm, which made no change to its Equal Weight rating or $6 price target on GoodRx shares, notes that CVS Caremark and GoodRx debuted Cost Saver earlier this year, and while it could yield Rx volume to GoodRx, Wells Fargo would “temper expectations” given the uncertain rollout to employers, lower repeat Rx volume vs. GoodRx’s traditional model, and limited application.