Amazon launches an online pharmacy, making CVS and Walgreens stock quake

It's hereeee... Amazon Pharmacy. Two years ago, Amazon acquired PillPack for $1B. Pharmacies were shook, but not as shook as they were yesterday when: the Zon launched an online pharmacy, built off PillPack's biz. Starting this week, people in 45 US states can send their prescriptions to Amazon and order meds.

• Prime members get free two-day shipping and savings benefits (up to 80% off generic and 40% off brand-name meds). And a savings card to use at 50K pharmacies.
• Non-Primers get free 5-day delivery (and a whole lot of pop-ups to join Prime). Amazon's accepting most forms of insurance, but you can pay without.

"Code red!"... Overhead at CVS corporate. Amazon's entering a massive market — nearly half of Americans take prescription drugs. In 2018, pharmacies sold $336B worth of prescription meds. But Amazon has over 110M US Prime members, which could make its ePharmacy seem more convenient (and cheaper). That's why:

• CVS and Walgreens shares dropped 9% yesterday, and Rite Aid plunged 16%.
• GoodRx stock fell 23% since it's "the Expedia of prescription drugs."
• Walmart stock dipped 2% — despite strong earnings yesterday — because it has a healthcare biz.