"Amazon Pharmacy, a new store on Amazon, allows customers to complete an entire pharmacy transaction on their desktop or mobile device through the Amazon App". From there, customers can ask their prescribers to route scripts to their Amazon account or manually request medications from within the Amazon Pharmacy portal.
Amazon will begin offering commonly prescribed medications Tuesday, including creams, pills, as well as medications that need to stay refrigerated, like insulin.
CVS shares fell as much as 8.5% in early trading in NY, while Walgreens Boots dropped as much as 10.3%.
TJ Parker, PillPack's CEO and vice president of Amazon Pharmacy, said in a statement the retailer aimed to bring 'customer obsession to an industry that can be inconvenient and confusing'. But Prime members who do not have insurance can also buy generic or brand name drugs from Amazon for a discount.
Amazon has launched its online pharmacy where customers can fill prescriptions and get free delivery. In addition to receiving prescription discounts in the Amazon Pharmacy, Prime members will also be eligible for prescription discounts at more than 50,000 pharmacies nationwide.
Amazon also notes that for people paying for medication without insurance, there are plenty of savings to be had.
Amazon Pharmacy is available in 45 states: The states Amazon Pharmacy is not available in are Hawaii, Illinois, Kentucky, Louisiana, and Minnesota, though Amazon says it expects to offer Pharmacy in those states at some point in the future. At the time, Amazon said it was " excited to see what we can do together".
The move also helps Amazon compete with Walmart Inc. and other big-box stores that already sell prescription drugs. Furthermore, if you're an Amazon Prime member, you'll be treated to unlimited two-day delivery for free, just as if you were ordering any other product on Amazon.
Amazon is coming in as the big fish in a crowded pond in prescription delivery services among the likes of the traditional chains such as CVS and Walgreens as well as newer, sometimes boutique players like Capsule and Honeybee. CVS acquired health insurer Aetna for $68 billion in 2018 and is adding more health services to its stores.
Most insurance is accepted, Amazon said.
Inside Rx, a subsidiary of Cigna Corp's Evernorth, administers that benefit, Amazon said. Two years ago, it spent $750 million to buy online pharmacy PillPack, which organizes medication in packets by what time and day they need to be taken.