E-commerce giant Amazon (AMZN) on Tuesday turned up the heat in the weight-loss drug distribution race by introducing a “comprehensive” weight management program at its primary care unit.
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Forget margin or options. Here's how the pros trade AMZNThe move sent shares in Hims & Hers Health (HIMS) plunging as low as 6% in pre-market trading before losses narrowed. It comes as the U.S. low-cost healthcare services provider is shifting its business strategy to focus on the more expensive branded obesity drugs, with the Bank of America (BAC) predicting a 31% hit to its GLP-1 franchise.
Amazon Bundles GLP-1 Program with Other Services
GLP-1, or glucagon-like peptide-1, is a hormone that manages blood sugar and appetite. It underpins some of today’s most popular obesity medications, such as Eli Lilly’s (LLY) Zepbound and Novo Nordisk’s (NVO) Wegovy.
Amazon said the new offering from Amazon One Medical combines primary care, pharmacy, and virtual care services “all in one place” with “transparent” GLP-1 pricing and same-day delivery. The unit has rolled out the GLP-1 management service across the U.S., with the offering tailored as part of a patient’s primary care relationship rather than an isolated service.
“Patients benefit from a fully integrated care journey: pre-visit screening, structured consultations, regular follow-up visits with integrated monitoring, standardized documentation, and evidence-based treatment algorithms with built-in safety protocols,” Amazon explained.
Amazon Doubles Down on GLP-1 Distribution Footprint
The launch of the program comes as Amazon has continued to expand its role in the distribution of GLP-1 treatments. In April, the tech giant started to offer same-day delivery of Eli Lilly’s new weight-loss pill, Foundayo, through its digital pharmacy.
Amazon also launched a similar service for Novo Nordisk’s Wegovy obesity pill earlier in January.
Is Amazon Stock a Good Buy Right Now?
On Wall Street, Amazon’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down into 42 Buys and three Holds assigned by 45 analysts over the past three months.
In addition, the average AMZN price target of $286.74 implies about 13% upside from current trading levels.
