Amazon moves to shake up drug supply chain

Amazon.com is buying its way into the heart of the US health-care system, said Bloomberg reporters yesterday, instantly shaking up a prescription-drug industry already in the midst of a broader transformation.

According to Bloomberg, insurance companies and drug-benefit managers have struck a series of deals in recent months designed in part to thwart a potential big splash in the health world from Amazon. But the online retail giant’s decision to buy online pharmacy PillPack rapidly accelerates the threat posed to entrenched retailers, suppliers and middlemen.

The news comes following an announcement in February that Amazon has launched its own line of over-the-counter (OTC) pharmaceutical products, effectively posing a challenge to pharmacy retail chains.