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Healthcare Brew covers pharmaceutical developments, health startups, the latest tech, and how it impacts hospitals and providers to keep administrators and providers informed.
Amazon seems to have caught on to how profitable direct-to-consumer (DTC) medication sales can be.
The e-commerce giant on November 14 announced it’s once again expanding its healthcare offerings, creating a new subscription-based telehealth service through its One Medical subsidiary to sell medications for five common health conditions, including erectile dysfunction (ED), men’s hair loss, and motion sickness.
The new business line puts Amazon in competition with other subscription telehealth companies including Hims & Hers, Ro, and Lemonaid Health, which each offer similar treatments. In Q3 2024 earnings released November 4, Hims & Hers—which has about 2 million subscribers—reported its revenue was up 77%, climbing from $226.7 million the previous year to $401.6 million this year.
Amazon has roughly 200 million Prime members. And since it’s charging cheaper prices than both Hims & Hers and Ro, Bank of America analysts wrote in a note that they see Amazon’s new service line as a “serious competitive threat” for Hims & Hers, CNBC reported.
Hims & Hers shares fell 24% from $27.60 to $20.85 by the end of the day following Amazon’s news. Ro and Lemonaid are both private companies, according to CNBC.
How it works. The service is available only to Prime members, who can visit Amazon’s website or app and meet with a clinician virtually via either messaging or video. If they’re prescribed medication, they can order it through Amazon Pharmacy for home delivery.
Amazon is offering Prime members clinical visits, treatment plans, and medication delivery for $19/month for ED, $16/month for men’s hair loss, and $2/use for motion sickness. Additionally, members can get treatments for eyelash growth for $43/month and anti-aging skincare for $10/month.
The bigger picture. The pharmaceutical industry writ large is moving toward a DTC model. Major drugmakers including Eli Lilly and Pfizer have also started consumer-focused business lines.