GoodRx, Walgreens, CVS shares all down on Amazon’s Pharmacy news
Consumer healthcare stocks are plummeting this morning on news that Amazon has finally launched its integrated pharmacy service.
Amazon launches Amazon Pharmacy, a delivery service for prescription medications
The news, which could dramatically reshape the healthcare landscape by offering deep discounts on prescription medication and two-day delivery services for Amazon Prime customers, has already taken a toll on the share price of companies like GoodRx, Walgreens, and CVS.
GoodRx was hit the hardest, with its shares slumping 19% in pre-market trading. Walgreens Boots Alliance was down nearly 10% before market open and CVS Health slid 7%.
Amazon has been steadily encroaching on pharmacy businesses in the same way the company has moved into grocery delivery and everyday consumer staples.
The convergence of food and pharmacy has been a decades-long evolution for mega-retailers on both sides of the divide - with grocers building out pharmacy services and pharmacies adding food to their shelves.
Since its acquisition of Pillpack in 2018, Amazon has been adding additional pharmaceutical and healthcare services. It launched its own over-the-counter drugs in 2019, and rolled out a healthcare network for its employees - Amazon Care for its workers in Seattle.
In August, Amazon launched its fitness tracker, Halo. The personal health and wellness monitoring and advice service includes a $64.99 wrist tracker and an application suite for monitoring health.
As TechCrunch noted, the service includes more than the standard health tracking gadget/app combo, by taking a comprehensive look at various measures of health, including body fat percentage, as measured at home with just your smartphone's own camera and the Amazon Halo app.
Amazon debuts Halo smart health subscription service and Halo Band wearable activity tracker
Taken together, Amazon's array of hardware, software, pharmacy services and healthcare network represents the most complete package of health services across industries.
It's a powerful pitch to consumers, and one that could ultimately significantly drive down healthcare costs. And drive down the revenue of other pharmacies, which investors are not stoked to imagine.