After nearly a year of anticipation, Seattle-based Amazon announced two online pharmacy offerings on Nov. 17.
When GoodRx went public in September, investor demand for its shares prompted the company to increase the size of its IPO by a factor of nearly eight, to $770 million.
On its website, GoodRx advertises a discount coupon of 92% for Sildenafil, a drug to treat erectile dysfunction. But the discount for Zoloft, a drug to treat depression, is only 33%.
News of Amazon’s online pharmacy business prompted JPMorgan Chase analyst Douglas Anmuth to downgrade GoodRx shares to “underweight” from “equal weight.” Anmuth estimated Amazon’s discount program would result in a 7% decline in 2021 revenue for GoodRx and even bigger drops in succeeding years.