Drug Chains Tumble on Reports Amazon Eyeing Their Pie
Amazon is reported to be in discussions with mid-market pharmacy benefit managers and has been hiring talent to assess the drug retailing market for its entry, brokerage firm Leerink analyst Ana Gupte wrote in a note to clients.
The language of friendship is not words but meanings. (Photo: Reuters)
Shares of drug retailers Walgreens Boots Alliance, CVS Health and Rite Aid tumbled on Friday after reports that Amazon.com was looking to make a move into selling drugs online. Amazon is reported to be in discussions with mid-market pharmacy benefit managers and has been hiring talent to assess the drug retailing market for its entry, brokerage firm Leerink analyst Ana Gupte wrote in a note to clients. "We are convinced that AMZN will almost certainly enter the drug distribution value chain within 2 years, evolving into a more disruptive offering over time," Gupte said. Amazon's entry into pharmaceuticals has been long rumoured in the media. On Friday, CNBC reported that the e-commerce giant would decide before Thanksgiving whether to move into selling prescription drugs online, citing a company email and a source familiar with the matter. Amazon does not comment on rumours or speculation, a company spokeswoman said. Shares of drug retailers Walgreens closed down 5.8 percent, Rite Aid 4.9 percent and CVS Health 4.9 percent.
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