Amazon.com, Inc. (NASDAQ:AMZN) is eyeing pharmacy market as the healthcare sector is regarded as the growth-oriented one. Though the company has been dithering on the entry into pharmacy market for quite some time, it appears that the online retailer has finally made up its mind. For that purpose, the company is keen to hire a general manager.
Amazon has been toying with the idea of entering pharmacy market and discussed about it during an annual meeting each year, CNBC reported. With its intention to hire personnel, the company could be breaking into the pharmacy market that is termed as a multibillion market. The move comes on the heels of consumers ready to shell out for health care making it an interesting sector to invest.
Though its current initiative cannot be taken as a deal done one, the company is showing its seriousness in bringing in a new general manager to draw strategy while the management is having a deep discussion with industry stalwarts. While one report suggests that the online retailer is hiring only GM, the other indicates that the hiring process is mostly from the pharmacy industry only.
To ensure regulatory compliance, Amazon indicated that it was hiring for its ‘professional health care program’ as it started selling medical equipment and supplies. The company also appointed Mark Lyons a few months back with a clear task of creating an internal pharmacy benefits manager for its employees. The objective is to scale out later. Until now, the company has not come out openly to disclose its intention of entering pharmacy business. At the same time, the online retailer also not denied any reports suggesting its entry.
There are over four bill prescriptions ordered each year in the United States alone. The company’s planned entry should be viewed on the back drop of $300 billion estimated spend on prescription drugs alone by patients, insurance companies and other payers in 2015. The online retailer believes that this is a lucrative market that cannot be ignored.
Amazon could generate about $25 – $30 billion from pharmacy market if its execution is perfect, GoodR co-founder, Stephen Buck, was quoted as saying.
In pre-market on Wednesday, Amazon shares are trading down 0.44 percent.