- Amazon reportedly deciding on move into drug market before Thanksgiving
- Analysts have estimated the US prescription drug market at $560billion annually
- The retail giant recently made a jump into groceries with Whole Foods takeover
Amazon is in the final stages of deciding a strategy to get into the prescription drug market, according to a new report.
The retail giant will decide before Thanksgiving whether to move into selling prescription drugs, CNBC reported on Friday, citing an email from the company and a source familiar with the matter.
Analysts estimate the US prescription drug market at $560billion annually, making for a lucrative potential expansion for Amazon.
Amazon is in the final stages of deciding a strategy to get into the prescription drug market, according to a new report
But the online retailer would also face significant new challenges, with entrenched competition, strict regulatory guidelines to meet, and a complex existing supply chain.
In a report this summer, Goldman Sachs predicted that Amazon would compete in the prescription drug space first by speeding up at-home delivery, and eventually moving to improve price transparency for the consumer and reduce out-of-pocket drug costs.
Amazon has recently signaled its willingness to move aggressively into a new market, with the acquisition earlier this year of grocery chain Whole Foods.
Shares of drug retailers including Walgreens Boots Alliance Inc, CVS Health Corp and Rite Aid Corp tumbled on the news.
Amazon would face significant new challenges, with entrenched competition, strict regulatory guidelines to meet, and a complex existing supply chain