Skip to content

GoodRx Share Price Collapses As Amazon Enters Pharmacy Business

Nigel Firth
Nigel Frith trader
Updated 18 Nov 2020

practice Stock Trading
Amazon Pharmacy ad

Shares of GoodRx Inc (NASDAQ: GDRX) plunged 22.5% on Wednesday after e-commerce giant Amazon announced the launching of Amazon Pharmacy.

new-recommended-broker-banner

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 plunged on Amazon Pharmacy announcement November 2020

GoodRx share price fell 22.5% to $36.21.

PEOPLE WHO READ THIS ALSO VIEWED:

Nigel Firth
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.