Giants enter the pharmaceutical industry, three major chain pharmacies stock prices plummeted
Some analysts believe that if Amazon enters the pharmaceutical market, it will bring about 25 billion to 50 billion US dollars of business opportunities each year, but also pointed out that in addition to facing more regulatory challenges, such as how to balance related medicines Mechanisms and laws must also consider how to compete with local pharmaceutical giants.
(The giants entered the pharmaceutical industry, the three major chain pharmacies fell sharply)
Once upon a time, the influx of capital made the medical e-commerce once and for all, and various innovation models emerged one after another. However, the good times are not long, and many companies involved in pharmaceutical e-commerce also face many difficulties in being called to stop and lose money. Recently, a news that Amazon will decide whether to carry out online sales of prescription drugs before Thanksgiving will once again stir up the pool of online drug e-commerce.
Giant Amazon is aggressively entering the $100 billion prescription drug retail market. Can it stir the industry and become the leader in the prescription drug market? In an interview with Changjiang Business Daily, Amazon China said that there is no relevant information that can be announced. However, "For Amazon, how to better use global resources for innovation will not stop."
Spread to the three major chain pharmacies in the United States, the stock price fell
It is reported that Amazon will try the water and medicine field again before the Thanksgiving in November this year. The news of the three major pharmacies in the United States fell sharply due to the news that Amazon wants to enter the pharmaceutical sales. Walgreens Boots Alliance, CVS Health and Rite Aid plunged 4.87%, 4.92%, and 5.77%, respectively. The stock prices of the three major pharmacies directly evaporated by $81.62, which translates into RMB 54.3 billion.
According to reports, Amazon is currently negotiating acquisitions with a number of medium-sized drug benefit managers (PBMs) and hiring relevant talents to evaluate the prescription drug retail market.
In fact, Amazon's news of entering the pharmaceutical market has long been the focus of the media. There have been rumors that in the late 1990s, Amazon had invested in a company called Drugstore. Com's e-commerce, affiliated to walgreen, the world's largest food and drug retailer, is the largest individual skin care, food, and pharmaceutical website in the United States. However, due to the sharp decline in revenue from the cooperation with the website, the final investment shares were transferred to the pharmacy chain. Brand Walgreens.
And then in 2003, Amazon again with Drugstore. Com tried the cooperation and ended up with the termination of the partnership.
The reporter contacted Amazon China on October 12 to verify whether the news was true. The other party said that there is no relevant information that can be announced.
However, Ana Gupte, an investment bank analyst, said, "Amazon will definitely enter the drug distribution value chain within two years and become more influential and disruptive over time."
After all, the US $ 615 billion a year in the US prescription drug market is too tempting, and having a place to sell prescription drugs online means huge profits. As the largest e-commerce giant, Amazon has already shown ambition.
According to public information, Amazon.com is currently selling medical supplies such as thermometers and gauze. The company also has a dedicated medical team responsible for hardware and software projects. In addition, Amazon's cloud service Amazon Web Services dominates the health and life sciences markets.
Last year, Amazon increased the size of its recruitment and consulted with many stakeholders about the company's prospects for entering the prescription drug market. After that, Amazon also established an internal drug welfare management department for its employees.
According to media reports, the success of the establishment of the medical welfare department will have an important impact on whether Amazon will be involved in a broader pharmaceutical supply chain. In May of this year, Amazon has set out to look for a new general manager to lead the project, externally called "health care."
In an interview with reporters, Shen Meng, executive director of Shannon Capital, who has been engaged in M&A transactions for many years, said: “For the traditional pharmaceutical circulation market, once Amazon obtains the sales license for prescription drugs, its low-cost business model is bound to be like the original bookstore. The impact is the same, while Amazon is not only limited to online operations, but also through the acquisition of the Whole Food Supermarket, which may be even more deadly for the impact of retail pharmacies that may only be offline stores."
Or restart the pharmaceutical retail business
Some analysts believe that if Amazon enters the pharmaceutical market, it will bring about 25 billion to 50 billion US dollars of business opportunities each year, but also pointed out that in addition to facing more regulatory challenges, such as how to balance related medicines Mechanisms and laws must also consider how to compete with local pharmaceutical giants.
US drug retail is not only a highly regulated industry, but also a highly monopolized industry. Therefore, some analysts said that Amazon itself can realize the complexity of this market and will not easily start. This time, Amazon will restart the pharmaceutical retail business, and may choose the self-operated model.
However, some experts believe that Amazon can provide face-to-face services to millions of customers by establishing pharmacies, or Amazon can use their technology to develop online pharmacy business. Because Amazon has two key advantages: mature retail and distribution network channels.
Its own strong user base and years of e-commerce giant signboards will definitely have an immeasurable impact on the pharmaceutical industry. If Amazon promotes one-stop shopping for convenient services, its market prospects are considerable.
For patients, it is a good thing to be able to buy the medicines they need at Amazon, so they only need to sit at home and wait for the medicine to come to the door, especially for some patients with limited mobility.
In addition, once Amazon enters, the transparency of drug prices will increase again, and consumers will continue to benefit the most. However, some people in the medical field expressed concern that Amazon's pharmaceutical e-commerce will impact the related industries more or less, causing the average profit to decline.
"I think Amazon will bring some transparency to the price of the pharmaceutical industry." Steve Booker, co-founder of the drug price comparison website GoodRx, has publicly believed that Amazon has great potential to compete with the pharmaceutical welfare management giant.
Realizing “Million Goods Store†still needs constant innovation
However, online pharmacies are not just as simple as sales. Cao Lei, director and researcher of the China E-Commerce Research Center, told reporters: "Amazon's entry into the medical e-commerce sector is also aimed at satisfying consumers' one-stop needs." Amazon users also need prescription drugs, and Amazon has its own advantages. Its global logistics network, brand benefits and investment capabilities all paved the way for online drug sales.
However, there are also thresholds for entering this market. Cao Lei added: "Because the policies of different countries in the world are different, taking the Chinese market as an example, the online sales of prescription drugs are not fully open at present, and the relevant license licenses are required to operate. And the departmental drugs are in the process of transportation. It is greatly affected by the environment, weather, temperature, etc. It may also affect the effect."
Amazon China also introduced to reporters its four core business priorities, including Amazon's overseas purchases and Amazon's "global store" cross-border e-commerce, including Amazon, which is a book, Kindle e-book reader and e-book. Amazon Logistics Operations and Amazon Cloud Services (AWS).
“Amazon is the largest e-commerce company in the world, and its business scope extends from book audio and video to various items. It is constantly seeking to expand its sales scale with its huge information processing and logistics platform, and truly realize the goal of 'Million Goods Store.'†Meng seems that to continue to grow, it also needs to continue to enter new business areas, and the current high-cost consumer prescription drug market has naturally become a new target for Amazon. At the same time, standardized electronic commerce can also reduce the abuse of prescription drugs and ensure drug safety. .
"For Amazon, how to better use global resources for innovation and exploration will not stop, and is committed to bringing more exciting to consumers, and pushing the industry forward." Amazon China told Changjiang Business Daily. .
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