How Amazon Might Be Creating a Chance to Jump into Pharmaceuticals by Doing What It Does Best But with A Twist: A Nationwide Mail-Order Pharmacy Delivering to The American Public
Amazon is in a position to upend the pharmaceutical supply chain; from government contracts to supplying independent pharmacies across the United States.
Amazon May Start it’s Own PBM
1. Amazon AWS started in July 2002 to bring Amazon technology to the market. Officially relaunched in 2006, AWS is by far and large the leading cloud computing provider 11 years later. This could parallel Amazon’s potential internal PBM being offered to the American public.
2. You might recall how Amazon introduced cashier-less checkouts in physical Amazon Go retail stores, where they only let employees shop during the Beta program. Under a similar strategy, Amazon might also use its employees as guinea pigs to fill mail-order prescriptions as a Beta program before allowing the American public to upload prescriptions and have them delivered using Amazon’s advanced logistics.
Seven of the top US pharmacies, by revenue, are mail-order pharmacies. Another top-player, Walgreens, just recently signed on a joint venture with Prime Therapeutics bringing the total to 8 of the top 15 pharmacies being directly involved with a mail-order pharmacy. Although recent QuintilesIMS data has shown that prescriptions declined in quantity dispensed, the reasons may not be because it is what the public preferred but a hard-fought battle that is being won by incumbents; instead it is arguable that Amazon can make it the new standard. No need to stop by the pharmacy on the way home when it could be conveniently waiting for you at home!
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