AMAZON ABANDONS ITS PLANS TO SELL PRESCRIPTION DRUGS

The stocks of US pharm distributors have risen after a report informing that the world biggest online retailer Amazon abandons its plans to sell prescription drugs to hospitals and clinics according to the reports from Reuters and CNBC.
Shares of McKesson, AmerisourceBergen and Cardinal Health went up 2-3% and shares of Walgreens Boots Alliance и CVS Health gained almost 5%. According to CNBC, Amazon has changed its plans partially due to the fact that the Company failed to convince the management of the health care facilities to move away from traditional procurement procedure of medicines.
Now, Amazon will focus on deliveries of only medical supplies to hospitals and clinics through its division Amazon Business. Amazon declined to comment when contacted by Reuters.
Analysts believe that the decision to refuse to enter the pharmaceutical distribution market was facilitated by such factors as the existence of an established system of supply of medicines, as well as the need for special expensive equipment for the distribution of strictly regulated products.
Analyst of the rating agency Morningstar Vishnu Lekhraj believes that even for Amazon, with its huge potential, entering the market of pharmaceutical distribution is very difficult, taking into account the dynamics of the pharmaceutical market as a whole.

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