Amazon will not make use of pharmacy licenses it obtained from Tennessee and Indiana to market prescriptions, but use them to market medical devicves and products instead, the business has told regulators.
Amazon offers kept mum about its ambitions in health care, despite reports that it is exploring engaging in the prescription drug business. But it possesses been quietly talking to regulators.
Analysts from the expenditure firm Jefferies uncovered correspondence between your company and regulators in Tennessee and Indiana. Excerpts from these records, which Jefferies attained in a Flexibility of Information Act request, express that Amazon intends to market medical devices and products in its Indiana fulfillment center, but would not become storing or distributing prescription medications.
“Applicant (Amazon) will not store or perhaps ship drugs,” the application clearly states.
Having said that, most industry professionals aren’t ruling out the likelihood of Amazon getting into the prescription drug marketplace. Instead, they maintain that it is a subject of if — rather than when.
“There has been an enormous overreaction to the Amazon threat, said Adam Fein, president of Pembroke Consulting and a drug supply chain expert, to CNBC.
“I would hardly ever underestimate Amazon,” he continued. “But I remain somewhat skeptical of Amazon’s capability and desire to fundamentally alter the medicine channel (as) the incumbents will have many opportunities to guard their position, capture benefit from internet technologies, and streamline distribution.”
Jefferies analysts stress that Amazon could navigate the complexities of the prescription medicine space, but that it’ll be likely to disrupt some lower-hanging fruit first of all. And that includes selling medical products, such as surgical equipment and equipment. That would be a more immediate threat to medical distribution firms, like McKesson and Cardinal Health, instead of to pharmacies and pharmacy benefits managers.
Amazon is expected to make a decision about whether it’ll get into the prescription drug business in the approaching weeks.