Amazon Pharmacy Sends Rival Drug Stores Tumbling

This post was originally published on this site —  Amazon (NASDAQ:AMZN) sent shudders throughout the world of healthcare after announcing a pharmacy business.

Amazon Pharmacy will fill and receive prescriptions like they would any order. For those without insurance, the company will provide savings benefits for Prime members of up to 80% off of generic and 40% off of brand name medications. 

Pharmacy companies CVS Health Corp (NYSE:CVS), Walgreens Boots Alliance Inc (NASDAQ:WBA), Rite Aid (NYSE:RAD) and GoodRx tumbled on the news, with the latter two down some 15%. 

Using a secure pharmacy profile, Amazon customers can add insurance information, manage prescriptions, and choose payment options before checking out. Prime members also get savings at over 50,000 other participating pharmacies nationwide.     

“We work hard behind the scenes to handle complications seamlessly so anyone who needs a prescription can understand their options, place their order for the lowest available price, and have their medication delivered quickly,” said TJ Parker, vice president of Amazon Pharmacy. 

Amazon has operated PillPack for six years. The service provides medication for individuals with chronic health conditions.  

Goodrx Holdings Inc (NASDAQ:GDRX), which went public in September, offers telemedicine services, tracks prescription drug prices and offers coupons for discounts on medications. Shares jumped 50% on the first day of trading from the opening price of $33. The stock is up 16% since the company went public.