GoodRx ED offering meant to compete with Hims & Hers, says Citi

Citi keeps a Buy rating on GoodRx (GDRX) with a $7 price target after the company announced a new erectile dysfunction subscription service that includes a virtual consultation, access to FDA-approved treatments, and home delivery for as low as $18 per month. The offering is clearly meant to compete with Hims & Hers (HIMS) and the “myriad other virtual health companies” offering easy and discrete access to generic drugs for the treatment of stigmatized conditions, the analyst tells investors in a research note. Citi thinks this is a smart strategic move by GoodRx and expects the rollout of additional conditions, like hair loss, as it further monetizes the 350M site visits that the company garners annually. GoodRx’s offering is 20% cheaper than Hims & Hers, but not quite as cheap as Amazon’s (AMZN) offering, Citi says. However, the firm thinks Hims & Hers’ marketing and personalized treatments “make for a compelling moat.”