A worker delivers Amazon packages in San Francisco on October 24, 2024.
David Paul Morris | Bloomberg | fake images
Amazon announced Thursday that Prime members can access new fixed prices for the treatment of conditions such as erectile dysfunction and hair loss in men, its latest effort to compete with other direct-to-consumer marketplaces such as Health for him and her and Ro.
Hims & Hers shares closed down more than 24% on Thursday, the company's worst day on record.
Amazon said in a blog post that Prime members can see the cost of a telehealth visit and the desired treatment before deciding to proceed with care for five common problems. Patients can access anti-aging skin care treatments starting at $10 per month; motion sickness for $2 per use; erectile dysfunction at $19 a month; eyelash growth for $43 a month and men's hair loss for $16 a month using the Amazon Prime Rx savings benefit at checkout.
Amazon acquired primary care provider One Medical for approximately $3.9 billion in July 2022, and Thursday's announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service are $49 and message visits are $29 when available. Users can receive treatment for more than 30 common conditions, including sinus infection and conjunctivitis.
Medications purchased through Amazon Pharmacy are eligible for discounted pricing and will be delivered to patients' doors in standard Amazon packaging. Prime members will pay for the consultation and medications, but there are no additional fees, according to the blog post.
Bank of America analysts on Thursday downgraded Hims & Hers stock from buy to underperform, citing Amazon's momentum in the hair loss and erectile dysfunction markets. Analysts said Hims & Hers generates more than 80% gross margins from its core offerings for erectile dysfunction and hair loss, and they estimate Amazon's drugs for those conditions at about 42% and 29%. cheaper, respectively.
As a result, analysts said they believe Amazon will limit the prices Hims & Hers can charge and hamper the company's ability to attract new customers.
“While Amazon may not offer the same personalized products, its vast network (we estimate 150 million Americans have Prime) creates a serious competitive threat to HIMS, in our view,” they wrote in a Thursday note.
Amazon has been trying to enter the lucrative healthcare sector for years. The company launched its own online pharmacy in 2020 after acquiring PillPack in 2018. Amazon introduced, and later closed, a telehealth service called Amazon Care, as well as a line of health and wellness devices.
The company also discontinued a secret effort to develop an at-home fertility tracker, CNBC reported Wednesday.
— CNBC's Annie Palmer contributed to this report.
