Skip to content
Home / News |

GoodRx Share Price Collapses As Amazon Enters Pharmacy Business

Amazon Pharmacy ad
Nigel F

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.

X testing X
WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
5.0
Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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 plunged on Amazon Pharmacy announcement November 2020

GoodRx share price fell 22.5% to $36.21.

PEOPLE WHO READ THIS ALSO VIEWED:

Nigel F
Nigel F
Team Member

Nigels tiefes Verständnis der Finanzmärkte basiert auf über 10 Jahren Erfahrung. Nigel wurde bisher zweimal von der FCA (Financial Conduct Authority) autorisiert und hat in der letzten Zeit eine Finanz-Brokerage Firma besessen und verkauft. Er liefert hochaktuelle Analysen und Einsichten in die Finanzmärkte und in die allgemeine Wirtschafts- und Währungspolitik des Vereinigten Königreichs, der USA, Europas und Asiens.