Pfizer, Johnson & Johnson and Bayer; these are all household names associated with the pharmaceutical industry. From Tylenol to Advil to anything in between, these companies produce some of the most well-known medications in the world. So, it would be silly for anyone to assume that they can enter the market today, with so many well-established brands, right?
Amazon.com, the world-famous electronic commerce and cloud computing company, is reportedly interested in entering the pharmaceutical industry. This may come as a surprise to several, but when you take a closer look, it makes sense.
Amazon is an incredibly popular and wealthy company. They continue to grow, almost exponentially. In fact, just last month, Reuters reported that Amazon’s net sales and profit both exceeded expectations set by analysts. Because of this healthy and constant growth, it makes sense that Amazon would look to a market that is seeing similar growth.
This also isn’t the first time that Amazon has invested in a new market. For example, the website was famously known as an online retailer before it tried its hand at the consumer electronics market. In 2007, Amazon introduced its Kindle e-reader, and in 2014, they produced their first smartphone, the Amazon Fire Phone. While the Kindle has managed to find a market, the Fire Phone failed. Amazon is also one of the largest companies in the cloud computing industry with Amazon Web Services, and they are even entering the brick-and-mortar retail store industry with their new Amazon Go grocery stores which should open later this year.
CNBC has also mentioned the possible threat that Amazon poses to traditional pharmacies. Seeing as how Amazon has already dominated online shopping, it is not impossible to think that those looking for pharmaceuticals would rather purchase them online as opposed to heading into a physical store. This can greatly benefit those who need medication, but are incapacitated or disabled.
However, as an article from Fortune has noted, selling drugs online could prove tricky because of the restrictions and safety concerns associated with the industry.
Of course, these are all still rumors and, as of this writing, Amazon has not made any official statement. However, it would be interesting to see the company disrupt the market and make purchasing pharmaceuticals easier than ever.
I will certainly keep you updated with more information as it develops.