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Amazon & Pharmaceuticals

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A brief and belated note.

CVS deal for Aetna

This is something to watch closely. The disruption in the grocery industry caused by Amazon’s purchase of Whole Foods, would be mirrored by their move into the pharmacy business.

Amazon has received approval for wholesale pharmacy licenses in at least 12 states. They include Nevada, Arizona, North Dakota, Louisiana, Alabama, New Jersey, Michigan, Connecticut, Idaho, New Hampshire, Oregon and Tennessee. An application is currently pending in the Maine. >>

Why this is interesting

This industry is an especially fascinating fit for Amazon given the amount of personal data that they have on consumers. Imagine using data analytics to sell anti-depressant medication to someone who recently purchased a book by…Sylvia Plath for example!

The play by CVS to buy Athena makes sense as a smart bit of vertical integration to provide protection from Amazon.

Such a deal would combine a health insurer that covers around 22 million people with a company that runs 9,700 drugstores and more than 1,100 walk-in medical clinics. It also processes more than a billion prescriptions annually through CVS Caremark, its pharmacy benefits management business. >>

 

 

About the author

Rajit Hewagama
Rajit Hewagama

A highly experienced digital strategist, with an extensive background in social media marketing and e-commerce and has served as an online communications strategist for national level political and cause-based
campaigns.

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Rajit Hewagama By Rajit Hewagama
Politics, Policy & Media it's all connected.

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