Amazon Pharmacy announcement sends stocks of drugstore chains tumbling

The announcement sent shares of CVS tumbling 8.8 percent Tuesday afternoon, while Rite Aid plummeted 16 percent and Walgreens Boots Alliance was down 8.4 percent.

Amazon just handed the nation’s pharmacy chains a tough pill to swallow.

The e-tail giant on Tuesday launched Amazon Pharmacy, its new online store that will allow customers to order prescription drugs directly to their homes.

The announcement sent shares of CVS tumbling 8.8 percent Tuesday afternoon, while Rite Aid plummeted 16 percent and Walgreens Boots Alliance was down 8.4 percent.

Through Amazon Pharmacy, customers will be able to speak to pharmacists 24/7 via the company’s site, and will give customers the option to compare prices of different drugs, as well as quickly switch between a co-pay and non-insurance option.

Customers who buy drugs with their Amazon Prime membership will also receive the same two-day shipping available on all the company’s other products.

Prime members using the service will receive “up to 80 percent savings” on generic drugs when paying without insurance, and up to 40 percent on name brands, the company says.

The move comes two years after Amazon’s $753 million acquisition of online pharmacy PillPack, which sorts its customers’ drugs by day and dose, and delivers the pills to its patients on a monthly basis.

PillPack will remain a separate service. Amazon Pharmacy is instead meant to save customers time and money instead of going to the pharmacy.

“We understand the importance of access to affordable medication, and we believe Prime members will find tremendous value with the new Amazon Prime prescription savings benefit,” Amazon Prime VP Jamil Ghani said in a statement.

Amazon Pharmacy discounts will also work at brick-and-mortar pharmacies, with Amazon saying it has partnered with more than 50,000 nationwide.

Shares of Amazon were up 1.1 percent Tuesday afternoon, trading at $3,164.20.

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