GoodRx upgraded to Outperform at TD Cowen after ‘game changer’ PBM partnerships

As previously reported, TD Cowen upgraded GoodRx (GDRX) to Outperform from Market Perform with a price target of $12, up from $6.50. In February, GoodRx announced a pilot partnership with Express Scripts, part of Cigna’s (CI) Evernorth division, and more recently the company announced a similar partnership with CVS Health (CVS) that is expected to start in January, the analyst noted. Combined the two PBMs represent roughly 60%-70% of covered pharmacy lives and based on the firm’s industry checks, the company’s new partnerships with large PBMs “will be a game changer,” the analyst tells investors. Not only will the deals generate a new revenue stream for GoodRx capable of driving consolidated growth for “multiple years,” they will also for the first time integrate GoodRx into the broader health care ecosystem, the analyst tells investors.