Amazon and GoodRx Launch Flat-Fee Prescription Plans as Insurance Coverage Thins

Insider Monkey··US·Read original
3▲1 ▼1Impact / 5
Summary · why it matters

Amazon and GoodRx are signing up Americans for flat-fee prescription plans as health insurance coverage thins, according to a Reuters report on September 29. Amazon charges from $5 a month and GoodRx from $14.99, with both including a range of generic drugs at no extra cost; GoodRx calls its version Companion and bundles telehealth discounts into it. The two are not equal participants, as Amazon is worth about $2.7 trillion and GoodRx about $1.1 billion, so the pharmacy line is a rounding error for one and close to the whole business for the other. GoodRx closed at $3.29 on September 30, more than a third lower than a year ago, while Amazon closed at $249.15 on September 30, about 13% higher than a year ago. Amazon grew revenue 19.60% last quarter with earnings up 244.90%, and its shares trade near 20 times trailing earnings and about 24 times next year's estimates, whereas GoodRx trades at 55 times trailing earnings on a market value near $1.1 billion.

Impact on assets 5

Consumer Staples▲ · 2 stocks
Artificial Intelligence▲ · 1 stocks
Amazon.com Inc
AMZN
▲ PositiveDemandrelevance

Amazon launches flat-fee $5/month prescription plans, a new product offering expanding its pharmacy customer base

Health Care▼ · 1 stocks
Goodrx Holdings Inc
GDRX
▼ NegativeCompetitionrelevance

Amazon's competing flat-fee prescription plan threatens GoodRx, whose pharmacy line is nearly its whole business

Consumer Discretionary▲ · 1 stocks