Amazon Wants to Make Your Drugstore Obsolete

The move, while expected at some point, still hit pharmacy giants CVS Health Corp. and Walgreens Boots Alliance Inc. hard: Both stocks slumped in early trading Tuesday. Investors are right to be concerned.

The prescription drug market is complex and mail order currently accounts for a minority of filled prescriptions, but Amazon is a logistical behemoth that has relationships with millions. The e-commerce leader poses a severe threat if it can deliver drugs reliably, quickly, and cheaply. Amazon certainly got the timing right. Telemedicine and mail-order drug startups are getting people used to the idea of online health care, and the pandemic is likely to boost demand and encourage new habits as people socially distance. 

Even if it takes time for Amazon to pick up steam, it would be foolish for the big pharmacy chains to regard its invasion of their turf as anything but perilous. The move heaps pressure

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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

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Drugstore Stocks View Amazon Pharmacy Launch as Poison Pill

For drugstore stocks, Amazon.com’s  (AMZN) – Get Report announcement on Tuesday that it is launching Amazon Pharmacy is already providing to be a tough pill to swallow.

Shares of pharmacy giants CVS Health (CVS) – Get Report, Walgreens Boots Alliance (WBA) – Get Report and Rite Aid (RAD) – Get Report all traded lower on Tuesday after Amazon announced the official opening of Amazon Pharmacy, its new full-service digital pharmacy for Prime members.

The offering puts Amazon in direct competition with the the pharmacy chains, and also puts it head to head with Walmart (WMT) – Get Report, Target (TGT) – Get Report and other big-box stores that already sell prescription drugs.

Amazon Pharmacy 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

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Amazon Pharmacy: Online drugstore and Prime Rx discounts extend tech giant’s reach into healthcare

The new online Amazon Pharmacy reflects the company’s larger ambitions in healthcare. (Amazon Photo)

Amazon will offer prescription medications for home delivery through a new online drugstore, promising Prime members free two-day delivery and discounts of as much as 80% on medications purchased without insurance.

The new services represent Amazon’s big move into the online pharmacy business, following the tech giant’s $753 million acquisition of prescription-by-mail company PillPack in 2018.

Amazon will be competing for a bigger share of the estimated $300 billion U.S. pharmacy market against a host of online drugstores and pharmacy delivery services from big rivals such as CVS, Walgreens, Walmart and Target, as well as smaller startups and traditional drugstores.

Amazon Pharmacy, as the digital drugstore is known, will be available on Amazon.com and the Amazon App. Doctors and other healthcare providers will be able to send prescriptions to Amazon, at the request of a patient,

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