Summary List Placement
Ever since Amazon bought online pharmacy PillPack in 2018, industry insiders have been waiting for Amazon’s big move into the prescription drug business.
On Tuesday, it finally came, triggering a sell-off of shares for distributors, retail pharmacies, and health plans alike.
“Whenever Amazon launches a new endeavor, the immediate reaction is that it will destroy the existing industry, so this morning’s sell-off is not surprising to us as investors shoot first and ask questions later,” Anton Hie, a senior research associate at RBC Capital Markets, told investors in a note on Tuesday.
Through the service, customers get discounts and free two-day shipping if they’re Prime members, plus the ability to search for drugs on Amazon similar to how they would shop for shoes and laundry detergent.
Read more: Amazon is now selling prescription drugs, and Prime members can get massive discounts if they pay without insurance
It remains to be seen if the tech behemoth can meaningfully lower drug prices in the US.
Even so, Amazon’s push deeper into healthcare stands to disrupt big parts of the industry.
Companies like drug wholesalers working directly with Amazon stand to benefit, while retail pharmacies and newer startups face increased competition.
Amazon itself stands to benefit from …read more
Source:: Businessinsider – Tech