Amazon will not use pharmacy licenses the item obtained through Tennessee in addition to also Indiana to sell prescriptions, although will use them to sell medical devices in addition to also supplies instead, the company has told regulators.
Amazon has kept mum about its ambitions in health care, despite reports which the item’s exploring getting into the prescription drug business. although the item has been quietly talking to regulators.
Analysts through the investment firm Jefferies uncovered correspondence between the company in addition to also regulators in Tennessee in addition to also Indiana. Excerpts through these documents, which Jefferies obtained in a Freedom of Information Act request, show which Amazon intends to sell medical devices in addition to also supplies in its Indiana fulfillment center, although would likely not be storing or distributing prescription drugs.
“Applicant (Amazon) will not store or ship drugs,” the application clearly states.
which said, most industry experts aren’t ruling out the possibility of Amazon entering the prescription drug market. Instead, they maintain which the item’s a matter of if, not when.
“There has been a massive overreaction to the Amazon threat,” said Adam Fein, president of Pembroke Consulting in addition to also a drug supply chain expert, to CNBC.
“I would likely never underestimate Amazon,” he continued. “although I remain somewhat skeptical of Amazon’s ability in addition to also desire to fundamentally alter the drug channel (as) the incumbents will have many opportunities to defend their position, capture value through internet technologies, in addition to also streamline distribution.”
Jefferies analysts stress which Amazon could navigate the complexities of the prescription drug space, although which the item will be likely to disrupt some lower-hanging fruit first. in addition to also which includes selling medical supplies, such as surgical equipment in addition to also devices. which would likely be a more immediate threat to medical distribution companies, like McKesson in addition to also Cardinal Health, rather than to pharmacies in addition to also pharmacy benefits managers.
Amazon can be required to make a decision about whether the item will get into the prescription drug business inside the coming weeks.