Amazon Is Bringing the Weight-Loss Drug Race to Medicare

This article first appeared on GuruFocus.

Amazon.com Inc. (AMZN, Financials), the e-commerce and cloud-computing company, is expanding its healthcare business by offering popular weight-loss medications to eligible Medicare patients at a significantly lower monthly cost.

Amazon Pharmacy said Medicare Part D patients who qualify can access Wegovy, Zepbound and Foundayo for $50 per month.

The move gives Amazon a larger role in the rapidly expanding market for GLP-1 drugs, which are used to treat obesity and diabetes. It also places the company closer to Eli Lilly and Novo Nordisk, the two leading manufacturers in the category.

Amazon already offers GLP-1 medications through its pharmacy and One Medical services, combining prescriptions, virtual care and home delivery. Its same-day medication service currently reaches thousands of U.S. communities and is expected to expand to nearly 4,500 cities and towns by the end of 2026.

For Amazon, the program could bring more recurring customers into its growing healthcare ecosystem.

Investors will watch adoption rates and whether prescription delivery can become a more meaningful source of repeat revenue.