Foreign media CNBC reported that Amazon will decide whether to conduct online sales of prescription drugs before Thanksgiving. It is reported that it is currently negotiating possible acquisitions with some medium-sized drug benefit managers (PBMs) and hiring relevant talents to evaluate the prescription drug retail market. Goldman Sachs also mentioned in August this year that Amazon will eventually seek to increase consumer price transparency and reduce out-of-pocket costs.
Amazon has begun selling medical supplies such as gauze and thermometers online. It also has a health care team called 1492 that focuses on hardware and software projects such as the development of Echo and Dash Wand's health apps. Its cloud service, Amazon Web Services, continues to play a role in the health and life sciences markets.
Amazon's five key backgrounds for the drug retail chain (Source: Goldman Sachs)
Ana Gupte, an analyst at Leerink Partners, said, "Amazon will definitely enter the drug distribution value chain within two years and become more influential and disruptive over time."
If Amazon, the online retail giant, enters the drug sales market, it is likely to become a leader in the prescription drug market, directly impacting traditional prescription sales outlets such as CVS and Walgreens. After the analysis report, Walgreens shares fell 5.8% in New York, CVS shares fell 4.9% to 76.92, and Rite Aid was 4.9%.
Amazon generally spends years researching market opportunities and then announcing its plans. If you consider the size of the market, the opportunity to sell drugs online is tempting – analysts estimate that the US prescription drug market sells $560 billion a year.
Global scale of prescription drug sales market in 2017-2022 (unit: billion US dollars)
In 2018, worldwide sales of prescription drugs will reach $ 811 billion, and by 2022, revenue is expected to exceed $ trillion. Among them, the sales of bio-pharmaceuticals grew fastest.
But some analysts say that Amazon itself can realize the complexity of this market and will not easily start.
In the past year, Amazon has accelerated its recruitment efforts and negotiated with dozens of potential pharmacy markets. The consumer goods team, including retail, has begun research, and Eric French, the vice president of the department, took the lead.
A number of other people familiar with the news said that Amazon has successfully digged from Premera Blue Cross and hired Mark Lyons as the internal pharmacy welfare manager.
Amazon may also launch a new transportation project called "Seller Flex" in the near future.
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