J&J lawsuit may spur adoption of GoodRx program, says Citi

Citi says a lawsuit has recently been filed against Johnson & Johnson (JNJ) by an employee alleging mismanagement of drug benefits. Among other issues, the lawsuit alleges that J&J overpays for generic drugs versus a “cash price,” the analyst tells investors in a research note. The filing includes several comparisons of J&J’s plan pricing and contains examples of alternative pricing which look very similar to pricing available through GoodRx (GDRX), contends Citi. The firm points out that GoodRx’s integrated savings program integrates pricing into the funded benefit. Think this may spur other employers to consider adopting GoodRx’s program, according to Citi. It keeps a Buy rating on the shares with an $8 price target.