Amazon Looking To Branch Into The Pharmaceutical Business

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Stock Photo: Paris, France - December 15, 2016: Amazon Prime Parcel Package. Amazon, is an American electronic commerce and cloud computing company, based in Seattle, Washington. (Hadrian / Shutterstock.com)

Amazon is all set to expand into different markets. According to reports, Amazon has gained pharmacy licenses in several states signaling its intentions to set foot into the world of drugstore and healthcare business.

According to the St. Louis Post-Dispatch, a dozen states have issued licenses to Amazon. These 12 states include Alabama, Arizona, Connecticut, Idaho, Louisiana, Michigan, Nevada, New Hampshire, New Jersey, North Dakota, Oregon, and Tennessee. Some states require the permits to sell “professional use only” medical devices to medical and dental practices such as procedure trays, sutures, and syringes.

Amazon’s bold move to venture into the world of pharmaceuticals has urged CVS to make a $66 billion offer for health insurer Aetna (AET). CNBC reports that Amazon will finalize their decision about selling prescription drugs online sometime around the end of November around Thanksgiving. Shoppers will now have the convenience of receiving their medication at their doorstep without having to go out.

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Amazon Prime logotype printed on cardboard box side seen from above on a wooden parquet floor. Amazon is an American electronic e-commerce company distribution worldwide (Hadrian / Shutterstock.com)

Many people are skeptical of the concept behind the initiative suggesting that Amazon is not expected to expand as much without setting up a pharmaceutical establishment as it is not a typical consumer industry. In addition to that, Amazon’s plan to venture into pharmaceuticals will bring them face to face with insurance companies.

Amazon has not released an official statement as of yet addressed any of the speculations and rumors. The massive global online retailer reported a blowout quarter earlier this week. Its shares surged more than 13 percent. The company’s market capitalization rose $62 billion on Friday. Earlier this week, CEO Tim Wentworth told Wall Street analysts that he was “very confident we’ll stand well against an entry in the [pharmacy benefits manager] space, be it Amazon or anybody.”

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Reginald Edward
Reginald has over 20 years of experience in business and technology. Reginald has an undergraduate degree in economics and completed post graduate work in business. He has extensive experience in a variety of fields, including: finance, media relations, marketing, strategic planning, public policy, and administration.