Amazon’s push into telehealth knocks shares of Hims & Hers
12:20 pm Thursday, November 14th, 2024
(Reuters) – Shares of Hims & Hers Health slumped 15% on Thursday after Amazon.com launched a rival service that offers upfront pricing for telehealth visits.
Amazon said it is introducing low, upfront pricing for a clinical visit, treatment plan, and free medication delivery for Prime members for a range of common health, beauty and lifestyle concerns.
Similarly, Hims & Hers connects patients to licensed healthcare professionals through its online platform and offers treatments for a range of conditions.
“Amazon’s rollout appears to offer a similar idea of convenience at what appears to be a lower price point across the board. We don’t know how successful it will be, but also note that this is a serious competitive threat being introduced to the market,” said Leerink Partners analyst Michael Cherny.
Customers can see both the prices for their telehealth consultation and medication from Amazon Pharmacy before moving forward with care, Amazon said.
Given Amazon is offering much more compelling prices than Hims & Hers on most treatments, we do think this is a threat to Hims’ core offering, said Citi analyst Daniel Grosslight.
Shares of Hims & Hers have more than doubled this year after the company began offering compounded GLP-1 weight-loss injections, such as Novo Nordisk’s Wegovy.
Amazon’s move makes Hims & Hers’ strategy to personalize treatment via compounding ever-more important, Grosslight added.
(Reporting by Sneha S K in Bengaluru; Editing by Shailesh Kuber)
