Amazon Launches New Prescription Drug Service

E-commerce giant Amazon (AMZN) has launched a new discount prescription drug service as it expands its healthcare offerings.

Amazon has unveiled “RxPass,” a subscription service for customers who have Prime memberships.

The Seattle-based company said Prime members will pay $5 U.S. a month to fill as many prescriptions as they need from a list of 50 generic medications that are cheaper versions of brand-name drugs.

Amazon said the flat $5 U.S. fee covers generic versions of medications such as antibiotic Amoxicillin and anti-inflammatory drug Naproxen.

The new service from Amazon doesn’t use healthcare insurance, and people with U.S. government-funded Medicaid or Medicare coverage are not eligible to participate.

The prescription drug service could help Amazon further expand into healthcare, a market it has pursued for several years, often with mixed results.

Last year, Amazon closed its virtual in-home care service called “Amazon Care” after it failed to attract U.S. employers. “Haven,” a company Amazon created in collaboration with JPMorgan (JPM) and Berkshire Hathaway (BRK.A) to improve healthcare costs, was shutdown in 2021.

In November 2022, the company launched “Amazon Clinic," a messaging service that connects patients with doctors for about two dozen common ailments, including allergies and hair loss.

Amazon has stressed that its online pharmacy is a key part of its current and future healthcare plans.

Amazon’s stock is down 33% over the past 12 months at $97.52 U.S. per share. The stock split on a 20-for-1 basis last summer.