Why CVS, Walgreens, Rite Aid, and Other Pharmacy Stocks Plunged Today
Pharmacy stocks fell sharply on Tuesday after Amazon.com (NASDAQ: AMZN) launched two new prescription medicine services. By the market close, shares of CVS Health (NYSE: CVS), Walgreens Boots Alliance (NASDAQ: WBA), and Rite Aid (NYSE: RAD) were down 8.6%, 9.6%, and 16.2%, respectively.
Amazon Pharmacy will give customers the option of ordering their prescription medications online on Amazon's main website. Prime members can have these medicines shipped free to their homes within two days and enjoy savings of up to 80% when paying without insurance. The new Amazon Prime prescription savings benefit will also provide sizable savings at more than 50,000 other participating pharmacies in the U.S.
"We designed Amazon Pharmacy to put customers first -- bringing Amazon's customer obsession to an industry that can be inconvenient and confusing," Amazon Pharmacy Vice President TJ Parker said in a press release. "We work hard behind the scenes to handle complications seamlessly so anyone who needs a prescription can understand their options, place their order for the lowest available price, and have their medication delivered quickly."
Source Fool.com
