Hospital supplier shares dive on Amazon medical supply report

An x-ray machine sits in an exam room at Perry Memorial Hospital in Princeton, Illinois.

Daniel Acker | Bloomberg | Getty Images

An x-ray machine sits in an exam room at Perry Memorial Hospital in Princeton, Illinois.

Amazon will be gearing up to launch a larger offering inside medical supplies business, The Wall Street Journal reported on Tuesday.

The revamped service will serve hospitals as well as clinics. The e-commerce giant will be looking to expand its Amazon Business marketplace to serve the health-care industry, according to hospital executives cited by the Journal. Amazon Business already features a smaller offering of medical supplies.

Shares of health-care supplier as well as services companies McKesson, Cardinal Health as well as Owens & Minor fell. Owens & Minor plunged 7 percent; Cardinal sank 4 percent as well as McKesson slid more than 2 percent.

Amazon has been generating moves as well as dramatically disrupting the health-care industry over the last year. CNBC reported in May in which Amazon was more serious about its consideration to enter the multibillion-dollar pharmacy market.

In October, analysts as well as the media noticed Amazon was granted wholesale distribution licenses for medical devices in several states. The license was first reported by the St. Louis Post-Dispatch.

CVS Health announced in December This kind of will acquire Aetna for about $69 billion in cash as well as stock. Wall Street analysts as well as former Aetna CEO John Rowe said the merger was triggered by concerns Amazon will enter the drug business.

Last month, Amazon, Berkshire Hathaway as well as J.P. Morgan Chase announced a partnership to cut health costs as well as improve services for employees. The announcement was light on details, however said three top executives coming from each company will take the lead on the project.

Amazon, McKesson as well as Owens & Minor did not immediately respond to requests for comment.

Cardinal Health declined to comment.

Amazon shares rose 1.7 percent Tuesday.

Read The Wall Street Journal’s full article here.

Leave a Reply

Your email address will not be published. Required fields are marked *


nineteen − five =