Trxade Group Inc. (NASDAQ: MEDS) shares jumped on Tuesday after the company announced that it entered into a definitive agreement with Amazon.com Inc. (NASDAQ: AMZN). Under the agreement, Trxade Group will promote and market Amazon’s storage lockers, a secure self-service kiosk and pick-up program.
Trxade Group will be paid a sliding fee for each independent pharmacy at which it introduces these storage lockers. Amazon’s Locker or Amazon Hub Counter program will be invoiced and paid on a quarterly basis.
The agreement has a one-year term, automatically renewable for successive one-year terms if not terminated by either party with at least 30 days written notice prior to such automatic renewal date.
Additionally, either party may terminate the agreement with 30 days prior written notice. Amazon may terminate the agreement immediately in the event that Trxade Group commits a material violation of law. Also, either party may terminate the agreement upon a breach of a material term of the agreement by the other party (in Amazon’s case immediately and in Trxade Group’s case after a 30-day cure period).
Excluding Tuesday’s move, Trxade Group stock had underperformed the broad markets with about a 35% pullback. In the past 52 weeks, the share price was down closer to 32%.
On Tuesday, Trxade Group stock traded up about 33% to $5.71, in a 52-week range of $1.02 to $11.60. The consensus price target is $10.75.
Amazon stock was down about 3%, at $3,034.15 in a 52-week range of $1,626.03 to $3,552.25. The consensus price target is $3,812.78.