Amazon Acquires Online Pharmacy
Amazon is entering into the online pharmacy/medicine business, signaling the company’s plans to upend the traditional market for the recommendation of drugs amid serious concerns about health care costs.
The tech and retail service provider announced Thursday that it is acquiring Boston-based online pharmacy startup PillPack, which sorts and delivers medication, including refills.
The Step makes Amazon a serious player; give more money but the complex market for others pharmacy services.
Amazon Services into Health Care
“This is one of the best marketplaces in that Amazon works in – Amazon is particularly ready to fulfillment, at consumer demand in terms of the supply chain and delivery of product,” said Marianne Udow-Phillips, executive director of the Center for Healthcare Research & Transformation at the University of Michigan. “They really have quality skills and capability to increase the efficiency of the pharmacy supply chain. I think it’s the perfect entry for them into the prescription medical field.”
For a company that has a great time on relentlessly driving down consumer prices – sometimes to the detriment of traditional industry service providers – prescription drugs may represent an outsized beast waiting to be tamed.