Amazon’s Pharmacy Rollout Sinks Drugstore Stocks

Amazon.com  (AMZN) – Get Report officially opened the virtual doors of Amazon Pharmacy, a new full-service digital pharmacy that lets Amazon Prime members order and fill their prescriptions online and have them delivered directly to their front doors.

The offering puts Amazon in direct competition with pharmacy giants CVS Health  (CVS) – Get Report and Walgreens Boots Alliance  (WBA) – Get Report, and helps it compete with Walmart  (WMT) – Get Report, Target  (TGT) – Get Report and other big-box stores that already sell prescription drugs.

Walgreens Boots, CVS Health and Rite Aid  (RAD) – Get Report all traded lower in premarket trading on Tuesday after Amazon’s announcement. Shares of Walgreens Boots were down 8.7% at $40.26, while shares of CVS were down 7.95% at $67.63. Rite Aid stock was down 12.79% at $11.28.

The new offering comes more than two years after Seattle-based Amazon’s $753 million acquisition of PillPack, an online pharmacy known for organizing pills into packets that also delivers drugs directly to consumers’ homes. 

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