Jeff Bezos ominously said “Your margin is my opportunity”
Well, there’s a whole lot of margin in the $500 billion pharmaceutical industry and Bezos just set foot on the land along with Amazon Pharmacy, well similar to Amazon eCommerce site but delivers prescribed drugs, introduced in like 45states around the world.
The timing of the launch couldn’t have been any better, launched in the midst of the winter.
According to reports, Amazon started the internal discussion for the launch in 2017 and that continued till 2018 when it acquired PillPack for $753million which send a monthly prescription to elderly people.
Amazon Pharmacy will make use of PillPack’s infrastructure, including its software’s and relationships with health plans. PillPack would still operate its existing subscription business.
Here is what you can get
Customers over 18 can have prescriptions sent to Amazon Pharmacy for common drugs like insulin, metformin (blood sugar medication), and etc.
Prime members get:
- Free 2-day shipping.
- Discounts of up to 80% for generic drugs, and 40% for branded drugs
While plans for becoming a new monopoly in the pharma industry has shaken the pharma competitors.
I'm not talking about small guys, but the ones who literally own the Pharma industry like
- Walgreens
- CVS
- GoodRx
Whatever the industry is if he steps foot in it he becomes a monopoly. So the question must be asked is there a limit? If not what’s next?
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