Pharmacy Business Leery of Potential Amazon Entry

Amazon Inc. (Seattle) has received wholesale pharmacy licenses in at least a dozen states, according to the St. Louis Post-Dispatch.

While rumors of Amazon’s foray into the pharmacy business have swirled as the retailer has gained a foothold in the grocery, meal-kit and home improvement sectors, The New York Times reports that CVS Health (Woonsocket, R.I.) is in talks to acquire Aetna (Hartford, Conn.), one of the country's leading health insurance providers, crediting the attempt partly as a reaction to Amazon’s potential move into the space.

Amazon refused to comment to The New York Times on what they call “rumors or speculation” on the subject. “Wholesale licenses are required for Amazon Business to sell professional-use-only medical devices in certain states,” said Lori Torgerson, an Amazon spokesperson, suggesting another intended use for the paperwork.

A former employee revealed to the The New York Times that the company has discussed entering the category through acquisitions and other undisclosed methods, and that it expressed interest in improving the customer experience across pharmacy and health retail as a whole.