Analyst: An Amazon entry into the pharmacy business would not be ‘market disruptive’

SEATTLE — A Wall Street analyst believes the potential for Amazon’s entry into the pharmacy business would not be “market disruptive.” These are the words of Mizuho Securities analyst Ann Hynes.

According to Barron’s, a major reason for this line of thinking is that ordering drugs by mail is not a new innovation. “CVS and Walgreens have been in this business for years and have relationships with drug companies and insurers that give them an early advantage,” the newspaper wrote.

Amazon “would face major infrastructure, payer and regulatory hurdles,” Hynes noted, with the news source adding “it would also be hard for Amazon to get wider discounts on generic drugs than the current players.”

In addition, many older people would rather go to drug stores than get their drugs by mail, giving an edge to companies with retail locations, the analyst stated. “Mail order penetration has been flat to slightly down over the past five years.”

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