Stocks in the consumer healthcare sector are experiencing a significant decline this morning following the announcement of Amazon’s new, comprehensive pharmacy offering.

This development, which has the potential to fundamentally alter the healthcare industry through substantial savings on prescription drugs and expedited, two-day shipping for Amazon Prime members, is already impacting the stock values of companies such as GoodRx, Walgreens, and CVS.

GoodRx has been particularly affected, with its stock price dropping 19% during pre-market activity. Walgreens Boots Alliance saw a decrease of almost 10% prior to the market opening, and CVS Health’s stock declined by 7%.

Amazon has been progressively expanding its presence in the pharmacy market, mirroring its successful strategies in grocery delivery and the provision of common household goods.

The blending of the food and pharmacy sectors represents a long-term trend for large retailers, with supermarkets incorporating pharmacy services and pharmacies expanding their offerings to include food products.

Following its purchase of PillPack in 2018, Amazon has been consistently introducing new pharmaceutical and healthcare solutions. The company introduced its own line of over-the-counter medications in 2019 and established a healthcare program for its employees, known as Amazon Care, initially for its workforce in Seattle.

In August, Amazon introduced its fitness tracker, Halo. This personal health and wellness platform provides both monitoring and guidance, featuring a wrist-worn device priced at $64.99 and a corresponding application for tracking health metrics.

As TechCrunch highlighted, this service goes beyond typical health-tracking devices and applications by offering a detailed assessment of various health indicators, including body fat percentage, which can be determined at home using only a smartphone camera and the Amazon Halo app.

Collectively, Amazon’s combination of devices, software, pharmacy services, and healthcare network constitutes the most extensive and integrated suite of health-related offerings available across different industries.

This presents a compelling value proposition for consumers and could potentially lead to considerable reductions in healthcare expenses—while simultaneously reducing the earnings of established pharmacies, a prospect that is concerning to investors.