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Boehringer and GoodRx launch low-cost biosimilar initiative

EditorAhmed Abdulazez Abdulkadir
Published 18/07/2024, 11:34
GDRX
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RIDGEFIELD, Conn. and SANTA MONICA, Calif. – In a move aimed at improving patient access to essential medications, Boehringer Ingelheim and GoodRx have teamed up to offer Adalimumab-adbm, a biosimilar to the anti-inflammatory drug Humira®, at an exclusive low cash price on the GoodRx platform. This initiative, which began today, is designed to assist patients who face high costs for treatment of autoimmune conditions.

Adalimumab-adbm is an FDA-approved interchangeable biosimilar that is used to manage symptoms of various chronic inflammatory diseases, including rheumatoid arthritis and Crohn's disease. The partnership between the pharmaceutical company and the prescription savings platform will make the medication available at over 70,000 retail pharmacies across the nation, potentially hastening the delivery of treatment to patients.

The companies have set the price for a two-pack of Adalimumab-adbm, in both high-concentration and low-concentration citrate-free formulations, at $550. This represents a significant discount of 92% from the list price of Humira.

Chris Marsh from Boehringer Ingelheim highlighted the initiative's focus on lowering financial barriers for those who are uninsured or underinsured, emphasizing the company's commitment to making critical treatments more accessible. Dorothy Gemmell of GoodRx echoed this sentiment, expressing enthusiasm about using the platform's reach to make biosimilars more affordable.

GoodRx has a history of working with various brands to provide savings and patient support programs. The addition of Adalimumab-adbm to their offerings marks an expansion into biosimilars, following a similar initiative with insulin last fall.

Biosimilars are biologic medicines developed to be highly similar to approved reference biologics, with no clinically meaningful differences in terms of safety, potency, and purity. An interchangeable biosimilar, as designated by the FDA, can be substituted for the reference product by a pharmacist, depending on state laws.

In other recent news, GoodRx Holdings Inc. has seen significant developments in its strategic and financial outlook. The company's upcoming quarterly report is expected to highlight the growth of Monthly Active Consumers (MACs), with RBC Capital forecasting a 9% year-over-year growth and anticipating this to support mid-single-digit percentage revenue growth.

RBC Capital, alongside TD Cowen, Morgan Stanley (NYSE:MS), and Barclays (LON:BARC), have all shown confidence in the company's direction, with varying upgrades and price target adjustments.

GoodRx's strategic shifts, including direct contracting and integrated service providers, have been underscored by TD Cowen, which maintained its 'Buy' rating on the company's stock. Morgan Stanley also raised its price target for GoodRx, following discussions with the company's CFO and CAO who expressed optimism about the company's mid-term goals.

The company has also announced the appointment of Simon Patterson, a tech veteran from Silver Lake, to its Board of Directors. The company's financial targets for 2026 include over $1 billion in revenue and an adjusted EBITDA margin of 35%+, indicating a confident outlook on its growth trajectory.

InvestingPro Insights

In light of the recent partnership between Boehringer Ingelheim and GoodRx to improve patient access to essential medications, it's worth noting the financial health and market performance of GoodRx Holdings Inc. (GDRX). With a solid market capitalization of $3.1 billion, GoodRx demonstrates a significant presence in the healthcare sector.

According to InvestingPro data, GoodRx boasts a remarkable gross profit margin of 92.38% for the last twelve months as of Q1 2024, underscoring the company's efficiency in managing its cost of goods sold relative to its revenue, which stands at $764.16 million. This impressive margin may be a testament to the company's ability to maintain profitability while offering competitive pricing on medications like Adalimumab-adbm.

InvestingPro Tips for GoodRx reveal a proactive management approach, as evidenced by aggressive share buybacks and a high shareholder yield. Additionally, analysts anticipate net income growth this year, which could further solidify GoodRx's financial position and its ability to engage in strategic initiatives such as the one with Boehringer Ingelheim. For readers looking to delve deeper into GoodRx's financial performance and gain additional insights, there are 13 more InvestingPro Tips available at https://www.investing.com/pro/GDRX. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

While GoodRx does not pay a dividend, the company has shown a strong return over the last three months, with a price total return of 22.59%. This indicates a robust investor confidence which may be buoyed further by the positive impact of the company's latest collaboration on patient access to affordable medication.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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