Hims & Hers stock tanks as Amazon starts charging fixed prices for hair loss and erectile dysfunction drugs

Hims & Hers Health, a mobile health service for customers to receive health care and prescriptions from home, saw its stock rise sharply on Thursday, shortly after Amazon announced updates to a surprisingly similar service for Prime members.

His stock fell more than 21% in mid-day trading.

Amazon detailed updates to its current telehealth offerings in a blog post. “Prime members can see the lowest monthly cost or cost per use of Amazon One Medical Pay-per-visit virtual visits and medications from Amazon Pharmacy related to the treatment they desire, before starting care,” it reads. “Once Prime members have their medical plan, they can order their medications from Amazon Pharmacy with just a few clicks.”

Prime members can receive instructions on 30 common issues. Some of these include anti-aging skin care treatments, starting at around $10/month, erectile dysfunction (ED) treatments at $19/month, hair loss prevention treatments at $43/month, and medications for conditions such as eye pink. and sinus infections. Members receive competitive pricing by using the Amazon “Prime Rx” savings benefit at checkout.

Amazon touted its cost-effective treatment for many common conditions in Thursday’s post, writing, “In comparison, Prime members save up to 92% on ED treatments and other popular subscription options.”

Meanwhile, Hims & Hers has seen its stock rise this year. Shares more than doubled when the company began offering GLP-1 weight-loss compound injections, making big money because of the nationwide shortage. But shares fell nearly 10% last month after the Food and Drug Administration removed Eli Lilly’s obesity and diabetes drugs from the drug shortage list.

Analysts say Amazon’s expansion of its telehealth services could cause more problems for Hims & Hers, whose prices are nearly competitive.

Citi analyst Daniel Grosslight told Reuters that given Hims & Hers shares soared after the company began offering compounded GLP-1 weight-loss injections, the company will have to rely on that treatment going forward. On Thursday, the brand sent multiple emails to those who signed up for the promotion advertising a “free online weight loss test.”

In Amazon, whose online pharmacy was launched in November 2020, expanded services mark a new chapter in healthcare. While the company has tried several times to enter the market, several attempts have failed: In the past, Amazon launched a health service called Amazon Care, as well as a line of health and wellness devices, both of which were closed. And on Wednesday, Amazon shut down a secret project to develop its own interest tracker. About 100 workers were involved in this project because of this.