What Happened?
Shares of healthcare tech company GoodRx (NASDAQ: GDRX) jumped 40.2% in the afternoon session after the company announced a collaboration with pharmaceutical giant Novo Nordisk to offer the popular medications Ozempic and Wegovy for $499 per month to eligible self-paying customers.
This landmark collaboration makes the popular GLP-1 medications—used for type 2 diabetes (Ozempic) and weight loss (Wegovy)—available at a significantly lower cost to those who lack adequate insurance coverage. According to the announcement, this marks the first time Ozempic has been offered at this self-pay price point. The offer is effective immediately and available through the GoodRx platform at over 70,000 retail pharmacies nationwide. Investors reacted positively, viewing the strategic partnership as a pivotal move that could substantially expand GoodRx's market reach and user base by capitalizing on the high-demand therapeutic category.
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What Is The Market Telling Us
GoodRx’s shares are very volatile and have had 27 moves greater than 5% over the last year. But moves this big are rare even for GoodRx and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock gained 5.7% on the news that the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran will hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices. Additionally, dovish signals from Federal Reserve Chair Jerome Powell in his Congressional testimony, reaffirming a "wait-and-see" approach on interest rates, further calmed markets, improving investors' appetite for stocks and other risk assets.
GoodRx is up 12.9% since the beginning of the year, but at $5.15 per share, it is still trading 40.1% below its 52-week high of $8.59 from August 2024. Investors who bought $1,000 worth of GoodRx’s shares at the IPO in September 2020 would now be looking at an investment worth $101.96.
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