The online retailing giant – Amazon – has spent years in researching opportunities for expanding its business. The e-commerce company is in the final stages of building a strategy to get into the multibillion-dollar market of drugs.
Amazon to decide soon if and when it would start selling drugs online
The drug supply chain is not very simple, it has several hurdles and quite a lot of competition so the online retailer will have a tough rough ahead. According to an email from Amazon viewed by CNBC, before Thanksgiving, the e-commerce giant will make a decision on whether it would sell prescription drugs online.
The online retailing giant will begin expanding its senior team with the experts of drug supply chain if it decides to sell drugs online. Before telegraphing its intentions, the online retailing company spends a few years in researching opportunities. Given the market size of drugs, the opportunity of selling drugs online is pretty fascinating. As per estimates of analysts, the prescription drug market of the United States is at $560 billion per year.
In addition to this, the sources familiar with the matter and the thinking of the online retailer have said that the company is well aware of the complexities of the pharmacy market. The automaker has hiked up its hiring and have even consulted with several people about a potential move into the drug market. The online retailer could not be reached immediately to comment on the matter.
Amazon to get into the drug management space: Leerink
The consumables team of the online retailer includes groceries and it started off the research with Eric French – the Vice President of the division – taking the lead. According to sources, to build an internal pharmacy benefits manager for Amazon’s employees, the team brought on Mark Lyons from Premera Blue Cross.
It is possible that the push into the drug supply chain is relying on its success with this effort, said one of the multiple sources. The online retailing giant kicked off its search for a general manager in May to lead its pharmacy push, which is codenamed “healthcare.” According to separate reports of Analyst firm Leerink, the online retailing giant will get into the pharmacy management space and an announcement regarding the same will come within the next year or two.