Amazon On Thursday, Prime members announced they’d gain access to recent fixed-price treatment for conditions comparable to erectile dysfunction and male pattern baldness. This is the most recent try and compete with other direct-to-consumer marketplaces comparable to Health for him and her and Ro.
Shares of Hims & Hers closed down greater than 24% on Thursday, the corporate's worst day on record.
Amazon said in a single Blog post that Prime members can see the fee of a telemedicine visit and their desired treatment before selecting treatment for five common problems. Patients can receive anti-aging skincare treatment starting at $10 monthly; motion sickness for $2 per application; erectile dysfunction for $19 monthly; Eyelash growth for $43 monthly and men's hair loss for $16 monthly using Amazon's Prime Rx savings perk at checkout.
Amazon acquired primary care provider One Medical for about $3.9 billion in July 2022, and Thursday's announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49 and messaging visits cost $29, where available. Users can get treatment for greater than 30 common conditions, including sinus infections and pink eye.
Medicines filled through Amazon Pharmacy are discounted and delivered to patients' doorsteps in standard Amazon packaging. Prime members pay for the consultation and medicine, but there are not any additional fees, the blog post says.
Analysts at Bank of America downgraded shares of Hims & Hers to “underperform” from “buy” on Thursday, citing Amazon's push into the hair loss and erectile dysfunction markets. The analysts said Hims & Hers generates greater than 80% of gross margins from its core erectile dysfunction and hair loss offerings and estimated that Amazon's drugs for those conditions are about 42% and 29% cheaper, respectively.
As a result, analysts expect Amazon will limit the costs Hims & Hers can charge, hurting the corporate's ability to draw recent customers.
“While Amazon may not offer the same personalized products, its wide network (we estimate 150 million Americans have Prime) poses a serious competitive threat to HIMS in our view,” they wrote in a press release Thursday.
Amazon has been attempting to break into the lucrative healthcare sector for years. After acquiring PillPack in 2018, the corporate launched its own online pharmacy in 2020. Amazon introduced and later discontinued a telehealth service called Amazon Care in addition to a variety of health and wellness devices.
As CNBC reported on Wednesday, the corporate has also halted its secretive effort to develop a house fertility tracker.
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