- Amazon shares rise about 0.4% after hours to $247.33
- Amazon Pharmacy is adding Novo Nordisk’s Wegovy weight-loss pill, pricing it at $25/month for insured customers and $149/month for cash-pay
- Next catalyst: Amazon’s expected Q4 results on Feb. 5, along with a key EU digital proposal on Jan. 20
Amazon.com (AMZN.O) shares rose 0.4% in after-hours trading on Friday after Amazon Pharmacy said it has begun offering Novo Nordisk’s (NOVOb.CO) Wegovy weight-loss pill via insurance plans as well as a cash-pay option. Customers who qualify and have commercial insurance could pay $25 for a one-month supply, while cash-pay begins at $149; the U.S. FDA approved the pill in December, Amazon said. AMZN last traded at $247.33, after ranging from $242.31 to $247.71 during the session. Novo has said the pill will also be available through CVS and Costco and through telehealth providers including Ro, LifeMD, WeightWatchers and GoodRx. (Reuters)
It’s a notable step as Amazon keeps leaning further into healthcare, with GLP-1 weight-loss drugs now driving demand — and sparking plenty of argument over who covers the cost. Wegovy is a GLP-1 drug, a class of medicines that mimics a gut hormone to help people feel full, and a pill version could appeal to patients who don’t want injections.
The timing is awkward for the stock, too. Traders are looking for new, lasting growth engines at the mega caps, with markets clinging to rate-cut hopes as earnings season rolls in.
“By offering Wegovy through both insurance and a straightforward cash-pay option, we’re giving people more choice, greater transparency, and fewer barriers to care,” said Tanvi Patel, vice president and general manager of Amazon Pharmacy. Amazon said it will ship the pill to all 50 states, with same-day delivery available to nearly half of customers. The company also plans to roll it out to Amazon Pharmacy kiosks in the coming weeks, and said its One Medical unit plus partners such as WeightWatchers, Wheel and 9amHealth will help manage care. (Business Wire)
U.S. stocks finished in the green on Friday, sending the S&P 500 to a record close as a weaker-than-expected jobs report barely budged expectations for Federal Reserve rate cuts. Preliminary data showed the S&P 500 gained 0.64% and the Nasdaq added 0.81%. “On the overall AI theme, investors are getting granular and picking the winners and losers,” said Zachary Hill, head of portfolio management at Horizon Investments. (Reuters)
But the Wegovy pill’s economics may come down to cash-paying customers without insurance, with price competition already fierce. Amazon is up against entrenched pharmacy chains and telehealth firms that effectively control access to prescriptions. On the tape, traders will be watching to see if AMZN can reclaim $250.
Wall Street Horizon is flagging Amazon’s next earnings release for Feb. 5 after the market, though it hasn’t been confirmed. In Europe, the European Commission is set to present its Digital Networks Act on Jan. 20, and Reuters reports big tech is likely to get a voluntary framework instead of new binding rules. (Reuters)
