Amazon OTC drug sales undercuts pharmacies

July 9, 2018

It’s not yet clear what will happen if Amazon.com begins selling prescription drugs online. But the mega-company’s line of OTC medicines is already putting pricing pressure on pharmacies. 

According to a report released by Jefferies Group, Amazon’s in-house Basic Care line, which includes generic drugs manufactured by Perrigo Co., is currently being sold at an average of 20 percent below the cost of their generic counterparts in pharmacies. The line includes 65 different products such as allergy medicines, pain relievers, sleeping aids and more. 

Although Amazon has signaled interest in also entering the market for prescription drugs, it’s not clear when the company intends to do so. But last week, Amazon announced that it is purchasing PillPack, a full-service online pharmacy that could help Amazon break into the market.

Read the full Bloomberg report.