“Amazon recently purchased a few startup pill packs from private vendors, equivalent to the over-the-counter ones that CVS Pharmacy and Walgreens sell. This poses a threat to many companies in this field. It seems that Amazon has already ventured out into many different fields, from sports utilities to plumbing, just completely wiping in store products profit out. This clearly explains why the Amazon stock price has gone through the roof!
The U.S. market for prescription medicine is huge. In 2016, U.S. consumers spent $328.6 billion on retail prescription drugs, according to the U.S. government. CVS reported prescription sales of $59.5 billion last year, and Walgreens sold $57.8 billion worth of drugs in its fiscal 2017. However, with Amazon picking up these other companies’ sales will most definitely drop, and they say that by 2020 Amazon’s profit’s out of perscription medicines will be almost double.
Amazon bought PillPacks inc. for estimated $1 billion on June 26th, 2018. PillPack, which organizes and delivers packages of medications for consumers, is licensed to ship prescriptions in 49 states, according to its website. The company previously had sale talks with Walmart, which had considered buying the start-up for less than $1 billion, CNBC has reported.
Here is what Walgreens Boots Alliance CEO Stefano Pessina has to say- “Yes, it’s a declaration of intent from Amazon, but the pharmacy world is much more complex than the delivery of a certain pills or packages.”
Will this bold purchase become another bigger game changer for Amazon, or will it a negative to their business. Let us find out!”
CNBC News. 28 June 2018, http://www.cnbc.com/2018/06/28/