Will Amazon enter pharmacy? 5 things to know

Laura Dyrda -

CNBC reported Amazon is in talks with generic drug companies about entering the pharmaceutical space.

 

Here are five quick things to know:

1. Preliminary talks between Amazon and generic drug makers including Mylan and Novartis' Sandoz indicate the company could enter the pharmacy space, although Amazon's plans aren't clear yet.

2. Amazon could enter the market as a wholesaler or as a retailer to sell generic medications, but no plans are public yet. Sandoz isn't expecting Amazon to have a major impact on its business, according to the report, although Amazon has disrupted many other industries.

3. Amazon could take a role in drug purchasing, and companies are "eager to establish a relationship with Amazon as part of 2018 business plans," according to an anonymous source in the report. Drug distributor and pharmaceutical supply chain company stocks have been pressured with the potential for Amazon to enter their space.

4. Regulatory challenges may dissuade Amazon from entering the pharmacy market, according to Walgreens Boots Alliance CEO Stefano Pessina during the Forbes Healthcare Summit.

5. Pfizer and Allergan CEOs were asked about Amazon during quarterly earnings calls, and according to the report responded favorably, but also said the companies weren't in formal discussions with Amazon at that time.

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