With the recent acquisition of Whole Foods, it has been reported that Amazon is looking towards the pharma market
With pharmaceuticals becoming a multi-million-dollar industry, Amazon is now looking at ways to expand its services further through developing markets. The pharma market is predicted to reach $1.12 trillion by 2022, something which Amazon would be foolhardy to ignore.
The recent news that the company has recently hired Box Healthcare Vice President and Managing Director Missy Krasner, signifies Amazon’s interest within the healthcare space, and its current investments in cloud products and services to further advance the healthcare industry.
Since May, Amazon has been selling medical products in areas such as Japan, alongside investing in new technologies such as Google Alexa, which will support patients from home. This is in addition to Amazon’s investment in drone technologies, which could drop pharmaceuticals directly to the patient’s home.
The recent acquisition of health food company Whole Foods even sent Walgreens and CVS Health stock prices falling by over three percent.
However, Amazon faces an uphill battle, with strong regulations to overcome within the industry, as well as PBMs and insurers. However, if the company is able to overcome these challenges, it is sure to grow rapidly. A strong distribution network will further see Amazon grow its market reach within ecommerce and create further competition in terms of drug pricing.
Tech companies are increasingly moving into, and undertaking significant investments in health technologies. Whilst Google has been looking at new innovative ways to provide patient-centred healthcare technologies, and even transportation company Uber has been hiring workers to collaborate with healthcare specialists in two new programmes.