DPC News

DSN | “If Amazon were to launch Pharmacy in Whole Foods, on Prime and Prime Now, an acquisition of Rite Aid would accelerate market share gains and other positive benefits.”

Cowen assesses Amazon’s Rx potential, marks RAD as prime acquisition target

| By David Salazar

As Amazon appears to be making moves to get into the pharmacy business — including the May hiring a senior manager of pharmacy benefits in May and the October acquisition of wholesale pharmacy licenses in 12 states in October — the question among industry players has been what form the online giant’s foray would take.  New York-based equity research firm Cowen has sized up the threat Amazon poses to the industry, and while its entry would not be as disruptive as some might think, there are still opportunities for Amazon in the pharmacy business, and Cowen suggests that some potential moves would still have a big impact — particularly through an acquisition of the Camp Hill, Pa-based Rite Aid.  “In one sense, we can view the entry of Amazon into the pharmacy market as another large chain store, or that of another mail pharmacy competitor,” the report says. “In this regard, we can see from our market model, depending on AMZN’s ability to get into retail and mail networks, there is a range of outcomes, but none suggesting retailers like CVS and WBA will be out of business.

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SOURCE: http://www.drugstorenews.com/article/cowen-assesses-amazons-rx-potential-marks-rad-prime-acquisition-target?tp=i-H55-Q5U-4xj-7c3qZ-1v-KV9-1c-1Lay-7c2cs-1oa6rQ&utm_campaign=Daily&utm_source=Experian&utm_medium=email&cid=19079&mid=112505607

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