Shares of GoodRx Inc (NASDAQ: GDRX) plunged 22.5% on Wednesday after e-commerce giant Amazon announced the launching of Amazon Pharmacy.
The new service, which will allow the U.S.based customers to order prescription medications for home delivery, marks Amazon’s much-awaited push into the pharmacy
“As more and more people look to complete everyday errands from home, pharmacy is an important and needed addition to the Amazon online store,” said Doug Herrington, senior vice president of North American Consumer at Amazon, in a statement.
GoodRx finds users prescription drugs at a discount. It also offers free coupons to slash the costs of prescription medication. On the other hand, it makes money by collecting fees from the pharmacy benefits managers.
Amazon acquired the prescription medicine delivery service PillPack in 2018 for $753 million.
Following their latest announcements, shares of CVS and Rite Aid – traditional pharmacy companies – also plunged.
GoodRx share price fell 22.5% to $36.21.
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