Amazon launches fixed-price treatment for hair loss and erectile dysfunction
A worker delivers Amazon packages in San Francisco on October 24, 2024.
David Paul Morris | Bloomberg | Getty Images
Amazon On Thursday, Prime members announced they would gain access to new fixed-price treatment for conditions such as erectile dysfunction and male pattern baldness. This is the latest attempt to compete with other direct-to-consumer marketplaces such as Health for him and her and Ro.
Shares of Hims & Hers closed down more than 24% on Thursday, the company's worst day on record.
Amazon said in a blog post that Prime members can see the cost of a telemedicine visit and their desired treatment before deciding on treatment for five common problems. Patients can receive anti-aging skin care treatment starting at $10 per month. motion sickness for $2 per application; erectile dysfunction for $19 per month; Eyelash growth for $43 per month and men's hair loss for $16 per month using Amazon's Prime Rx savings perk at checkout.
Amazon acquired primary care provider One Medical for about $3.9 billion in July 2022, and Thursday's announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49 and messaging visits cost $29, where available. Users can seek treatment for more than 30 common conditions, including sinus infections and pink eye.
Medicines filled through Amazon Pharmacy are discounted and delivered to patients' doorsteps in standard Amazon packaging. Prime members pay for the consultation and medication, but there are no additional fees, the blog post says.
Analysts at Bank of America downgraded shares of Hims & Hers to “underperform” from “buy” on Thursday, citing Amazon's push into the hair loss and erectile dysfunction markets. The analysts said Hims & Hers generates more than 80% of gross margins from its core erectile dysfunction and hair loss offerings and estimated that Amazon's drugs for those conditions are about 42% and 29% cheaper, respectively.
As a result, analysts expect Amazon will limit the prices Hims & Hers can charge, hurting the company's ability to attract new customers.
“While Amazon may not offer the same personalized products, its wide network (we estimate 150 million Americans have Prime) poses a serious competitive threat to HIMS in our view,” they wrote in a statement Thursday.
Amazon has been trying to break into the lucrative healthcare sector for years. After acquiring PillPack in 2018, the company launched its own online pharmacy in 2020. Amazon introduced and later discontinued a telehealth service called Amazon Care as well as a range of health and wellness devices.
As CNBC reported on Wednesday, the company has also halted its secretive effort to develop a home fertility tracker.
—CNBC's Annie Palmer contributed to this report.
