CNBC reported late Tuesday that Jeff Bezos’s multifaceted company has been taking on pharmaceutical talent. That includes both the hiring of a general manager to lead a potential unit and other prospects from the pharmacy sector, according to sources.
For Amazon, it’s a lucrative market that would require navigating a variety of existing players. For consumers with a high dollar deductible, Amazon could someday be a go-to destination to shop for drugs, the CNBC report further stated.
From a distribution standpoint, difficulties breaking into industry include a complex Healthcare system, warehouse operations that need to be tailored for pharmaceutical handling (temperature control, etc.), a complicated billing system, and a consolidated industry, say Morgan Stanley experts.
CVS and Walgreens don’t have reason to worry just yet, though. Amazon hasn’t committed to moving forward into the pharmacy market at this point.
