Amazon recently invaded the Grocery space and set it “on fire” with its recent acquisition of Whole Foods, and now the company which is headed by the recently anointed World richest man, Jeff Bezos, seems to have set its sight on disrupting the pharmaceutical industry.
It has been reported that Amazon may have taken steps to become the latest and possibly the biggest drug seller and distributor in town, a report that has caused a bit of worry among existing pharmaceutical bigwigs, and with good reasons too.
Pharmacy giant CVS Health and seeks to buy health insurance firm Aetna for US$66 billion in what would be the biggest deal of the year if it goes through and this megamerger might be figured by Amazon’s resolve to disrupt the pharmaceutical industry.
Ana Gupte who is an analyst at Leerink Partners wrote in a research note that “The likely Amazon entry into retail pharmacy is a major threat to CVS, on top of already dwindling storefront sales,”
According to a report in the St. Louis Post-Dispatch, Amazon has obtained licenses to sell drugs as a wholesaler in 12 states. The 12 states are Nevada, Arizona, North Dakota, Louisiana, Alabama, New Jersey, Michigan, Connecticut, Idaho, New Hampshire, Oregon, and Tennessee.
And although this report might cause some shivers down the spines of prescription drugs distributors and sellers, it is only good news for consumers of this drugs.
Constellation Research principal analyst, Cindy Zhou is quoted as saying to E-Commerce Times “With Amazon’s focus on customer convenience and reorders/auto-orders, this is a logical next step for the company,” She added “Bulk orders for regular prescriptions have been offered by the insurance carriers for decades, but Amazon can deliver it to the end customer conveniently,”
Amazon just can seem to steer clear of any sector and we wonder which is next.