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Rx - Game Changer?

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Amazon is looking into mail order prescriptions. 

Talk about turning an industry on its ear.... :eek:

 

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Amazon will be deciding before Thanksgiving whether to move into the online selling and delivery of prescription drugs, and the news that the ecommerce giant could be entering the market sent shares of drug retailers Walgreens, CVS and Rite Aid tumbling  on Friday.

“We are convinced that AMZN will almost certainly enter the drug distribution value chain within 2 years, evolving into a more disruptive offering over time,” brokerage firm Leerink analyst Ana Gupte wrote in a note to clients..

And according to CNBC, as well as a source familiar with the situation, when Amazon decides to make the move, it will expand its senior team with drug supply chain experts.

It isn’t surprising that Amazon would consider making the move, as analysts have estimated the U.S. prescription drug market at $560 billion per year. Amazon is well aware of the complexities, and typically spends years researching opportunities before making final decisions.

Goldman Sachs has speculated that the eCommerce giant will ultimately work to improve price transparency for consumers and reduce out-of-pocket costs. And another news report last month revealed that Amazon was considering getting into the mail-order pharmacy market, potentially targeting people who are uninsured or have high deductibles and pay cash for prescription drugs. Pharmacy executives said it would take 18 to 24 months or even longer to get drug licenses in all 50 states.

Amazon already has a business selling medical supplies online, such as gauze and thermometers. In addition, it has a health team called 1492 that focuses on both hardware and software projects, such as developing health applications for the Echo and Dash Wand . And its cloud service, Amazon Web Services, dominates the health and life sciences market.

In the past year, Amazon has hired and consulted with dozens of people about a move into the pharmacy market. The consumables team, which includes groceries, started the research, led by the division’s vice president, Eric French.

Amazon also brought on Mark Lyons from Premera Blue Cross to build an internal pharmacy benefits manager for its own employees, with sources saying that any decision potentially hinges on its success with this effort. And in May, the company began searching for a general manager to lead its pharmacy move, externally dubbed “healthcare.”

 

 

Edited by J

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Pharmacies already ship drugs through the mail. They've been doing it for many years. Well into the last century :laugh:

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This has been rumored for quite some time.

 

Stocks to watch today:

 

CVS

ESRX

ABC

CAH

MCK

 

Remember that CVS is not only the largest pharmacy - it's also the largest PBM.

 

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2 hours ago, patchyfog said:

Well, Congress ain't done nothing to reduce our highest-in-the-world drug costs...

I assume Amazon would have the bargaining power to renegotiate drug prices with pharma companies. It will be interesting to see how they end around the existing major insurers who already have mail-order services

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2 minutes ago, saltydawg said:

I assume Amazon would have the bargaining power to renegotiate drug prices with pharma companies. It will be interesting to see how they end around the existing major insurers who already have mail-order services

And international deals

All they need is for our laws to allow it.

 

So all they need is bucks and clout.

 

Oh... they have that

:)

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2 hours ago, Gotcow? said:

Shipping drugs thru the mail?

What could go wrong.............

Had 90 day mail order prescriptions for the past few years.

 

No problems to date

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2 hours ago, patchyfog said:

Well, Congress ain't done nothing to reduce our highest-in-the-world drug costs...

 

Of course nothing happens, there are far too many pharma bag men in DC.

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