Hims & Hers Health (HIMS.US) shares are trading more than 14% lower at midday Thursday in possible response to Amazon (AMZN.US)'s new upfront pricing for telehealth visits and treatment plans.
Amazon announced Thursday that its Amazon One Medical telehealth service is introducing low upfront pricing for clinical visits and treatment plan, as well as free medication delivery for Prime members.
Prime members can now see the total monthly cost or individual use cost for Amazon One Medical Pay-per-visit virtual visits and medications from the Amazon Pharmacy before signing up for care.
"This simple care experience was built to meet the needs of today's customer. At Amazon, we're working to reduce the burden on patients who'd like to move forward with care, but may be tired of navigating the hurdles of our health care system, waiting in a long line at the pharmacy, or worried about a surprise bill or medication cost," said Vin Gupta, chief medical officer for Amazon Pharmacy.
Prime members who use Amazon Pharmacy will pay a low, upfront price for medications and get those medications delivered for free for a range of common health, beauty and lifestyle concerns including anti-aging skin care treatment, men's hair loss, erectile dysfunction and motion sickness.
Hims & Hers Health shares moved lower on the news. The company's strategy involves bringing customers convenient, transparent and affordable access to care.
In the third quarter, Hims & Hers subscribers jumped 44% year-over-year to 2 million. The company's revenue was up 77% year-over-year to $401.6 million, and Hims & Hers raised its full-year outlook to $1.46 billion to $1.465 billion.
"Our model is rapidly gaining scale, driving accelerating top line growth, improving profitability and strong cash flow. We are seeing this strength across our business," CFO Yemi Okupe said in the earnings release.
