Could your next prescription come from Amazon?

Amazon may be exploring a move into the $465 billion-a-year U.S. pharmaceutical market. It’s a market ripe for disruption but also a difficult one to enter, say analysts.

There have been some clues in recent Amazon moves. In November, the company launched a one-hour delivery service for non-prescription items from Bartell Drugs, a 127-year-old pharmacy chain based in Seattle, as part of its Prime Now offerings. Amazon frequently tests programs around Seattle where it can be hands-on with them.

Two months ago it hired Mark Lyons, a former executive with Washington state health plan Premera Blue Cross, to be a senior manager in its pharmacy benefits, a move first reported by CNBC.

Amazon has been holding an annual meeting on whether it should consider going into the pharmacy business for the last several years, said the CNBC report, citing unnamed sources. And it’s currently advertising for a professional health care program manager. It’s already made moves to beef up its offerings in medical supplies, according to the company’s site.

Amazon declined to comment.

As consumers are moved to the center of the health-care universe and as high deductible insurance places more costs on them, there’s a possible role that Amazon could play, said Vaughn Kauffman, a global health analyst with PwC, a consulting service.

The company, which has upended the brick-and-mortar market for books, electronics and other goods, would pose a major competitive threat to existing heavyweights including Walgreens and CVS. But it wouldn’t be cheap or easy to break into the pharmacy market, say analysts.

By Elizabeth Weise | USA Today

Image Credit: Elizabeth Weise

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About Peter Coffaro 682 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the orthopedic industry. Recognized by MedReps.com as one of the top medical sales influencers in the industry; he has 10 years of combined sales management experience and has held positions as a Director, General Manager and Distributor. Peter has worked for some of the top orthopedic companies in the world - Zimmer, DePuy and Stryker. He is also the founder of OrthoFeed: a popular blog that covers orthopedic news and emerging medical technologies. Peter is a three-time Hall of Fame award winner at Johnson and Johnson and has an extensive background in organizational development, business development, sales management, digital marketing and professional education. Peter holds a B.S. degree in Biology from Northern Illinois University.

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