Rumors Persist About Amazon’s Entry into the Rx Drug Market

Aug. 14, 2017

Rumors circulated about Amazon’s interest in entering the pharmacy business months back, and now Goldman Sachs analysts have released a 30-page report on Amazon's likely ambitions in the market.

Back in May, CNBC sources revealed that Amazon created a new general manager position to figure out how the company can break into the pharmacy market and that Amazon holds an annual meeting at its Seattle headquarters to discuss whether it should enter the pharmacy business.

Goldman Sachs has now released a report from five research analysts on Amazon's likely interests in the $560 prescription drug market.

According to analysts, Amazon might start by partnering with a pharmacy benefits manager (PBM), rather than attempting to replace pharmacies. Amazon could begin by speeding up the drug delivery process and facilitating at-home delivery, which could ultimately reduce out-of-pocket drug costs, says the report.