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Optum Rx, a UnitedHealth Group pharmacy provider (NYSE: UNH), has launched a drug price comparison tool to allow its members to find the lowest prices for any type of drug.
It is called Price Edge and Available to all Optum Rx members, this tool compares direct-to-consumer prices for traditional medicine and insurance prices.
“Price Edge ensures competitive prices for consumers on all types of drugs,” the company said, adding that it offers lower drug prices to consumers about 90% of the time.
The Price Edge option is open to more than 1.5M Optum Rx members, and the company plans to add another 400K members by Mar. 01.
GoodRx Holdings ( GDRX ), which provides tools and information to compare drug prices, traded lower after the announcement, which coincided with Amazon’s ( AMZN ) launch of its regular RxPass service.
According to Citi analyst Daniel Grosslight, RxPass represents a “credible threat” to GoodRx (GDRX) for consumers with many diseases and will force a gold membership of the drug storage platform.
“We think GoodRx will need to accelerate the pace of new products to offset the risk of AMZN,” the author wrote, maintaining a Buy rating of $7 per share of the stock.
Looking for a sponsor Alpha Vader Capital sees GoodRx’s (GDRX) marketing and large network as its competitive advantage.
