 | |
| Company type | Subsidiary |
|---|---|
| Industry | Pharmaceutical |
| Founded | November 17, 2020 |
Area served | United States |
| Services | Online pharmacy |
| Parent | Amazon |
| Website | pharmacy |
Amazon Pharmacy is an American online pharmacy which is a subsidiary of Amazon. The business was launched on November 17, 2020, initially offering pharmacy service only in the United States.
On November 17, 2020, Amazon launched Amazon Pharmacy. [1] The move was described as "arguably Amazon’s broadest push into the healthcare business to-date."
Amazon Pharmacy's business is based on sales. The company offers free, two-day home delivery of prescriptions to Amazon Prime subscribers. [2] Amazon Pharmacy requires customers to establish a secure pharmacy profile to manage insurance and medical information. [3] At the time of its formation, Amazon Pharmacy's operation was limited to the United States. [3] At the time of its launch, Amazon Pharmacy also announced its intention to offer a help line staffed by pharmacists and a discount program for uninsured customers. [4]
Challenges faced by Amazon Pharmacy include the need for customers to ask doctors to redirect prescriptions, customer habit in using nearby brick-and-mortar drug stores, and customer desire to speak in person with a pharmacist. [5]
The formation of Amazon Pharmacy was expected to result in disruption of the retail pharmacy sector. [6] On the day of its launch, stock prices for competitors dropped: GoodRx by 20%; Rite Aid by 16%; and Walgreens and CVS Pharmacy by 9% each. [4] In all, drugstores, drug distributors, and health insurers lost $22 billion in market value on the day of Amazon Pharmacy's launch. [7]
An analysis from Citi Research called the announcement "a disruption to the system and competitive threat that will likely shift scripts away from the retail channel." [6] An Edwards Jones analyst opined that Amazon Pharmacy was a particular threat to smaller drugstores that lack the purchasing power of major drugstore chains. [6]
Some employers, such as 7-Eleven, began only paying for prescriptions through Amazon Pharmacy following its launch through their health insurance plan.
The establishment of Amazon Pharmacy followed Amazon's acquisition of PillPack in June 2018 for a reported US$753 million. [8] In an interim step, Amazon rebranded PillPack in November 2019 as "PillPack, by Amazon Pharmacy". [9] With the launch of Amazon Pharmacy, the company announced that PillPack would continue to operate as a "distinct service for customers managing multiple daily medications for chronic conditions." [2]
drugstore.com was an internet retailer in health and beauty care products. Its web operations were launched on February 24, 1999, and shut down on September 30, 2016 after being acquired by Walgreens in March 2011 for $409 million.
CVS Pharmacy, Inc. is an American retail corporation. A subsidiary of CVS Health, it is headquartered in Woonsocket, Rhode Island. Originally named the Consumer Value Stores, it was founded in Lowell, Massachusetts in 1963.
Walgreens is an American company that operates the second-largest pharmacy store chain in the United States, behind CVS Health. It specializes in filling prescriptions, health and wellness products, health information, and photo services. It was founded in Chicago in 1901, and is headquartered in the Chicago suburb of Deerfield, Illinois. On December 31, 2014, Walgreens and Switzerland-based Alliance Boots merged to form a new holding company, Walgreens Boots Alliance. Walgreens became a subsidiary of the new company, which retained its Deerfield headquarters and trades on the Nasdaq under the symbol WBA. In 2021 the company was found by a federal jury to have substantially contributed to the opioid crisis.
Eckerd Corporation was an American pharmacy retail chain that was headquartered in Largo, Florida, and toward the end of its life, in Warwick, Rhode Island. At its peak, Eckerd was the second-largest pharmacy chain in the United States, with approximately 2,802 stores in 23 states as far west as Arizona.
Rite Aid Corporation is an American drugstore chain based in Philadelphia, Pennsylvania. It was founded in 1962 in Scranton, Pennsylvania, by Alex Grass under the name Thrift D Discount Center. It is the third-largest drugstore chain in the United States, with over 2,000 stores, and ranked No. 148 in the Fortune 500 in 2022.
Longs Drugs is an American chain owned by parent company CVS Health with approximately 70 drugstores throughout the state of Hawaii and formerly in the Continental US.
Express Scripts Holding Company is a pharmacy benefit management (PBM) organization. In 2017 it was the 22nd-largest company in the United States by total revenue as well as the largest pharmacy benefit management (PBM) organization in the United States. Express Scripts had 2016 revenues of $100.752 billion. Since December 20, 2018, the company has been a direct subsidiary of Bloomfield, Connecticut-based Cigna.
In the United States, a pharmacy benefit manager (PBM) is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, and state government employee plans. According to the American Pharmacists Association, "PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims." PBMs operate inside of integrated healthcare systems, as part of retail pharmacies, and as part of insurance companies.
Farmacias El Amal, was a regional pharmacy chain operating throughout Puerto Rico. At its peak, it operated more than 60 pharmacies across Puerto Rico. The chain was privately held and was founded in 1973. Its largest competitors were Walgreens, Kmart and Walmart.
CVS Health Corporation is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider, among many other brands. The company is the world's largest healthcare company, and its headquarters are in Woonsocket, Rhode Island. In 2023, the company was ranked 65th in the Forbes Global 2000.
A pharmacy is a retail shop which provides pharmaceutical drugs, among other products. At the pharmacy, a pharmacist oversees the fulfillment of medical prescriptions and is available to counsel patients about prescription and over-the-counter drugs or about health problems and wellness issues. A typical pharmacy would be in the commercial area of a community.
A tobacco-free pharmacy is a retail pharmacy where the sale of tobacco products is not available. Outside the United States, it is illegal in countries such as in France and most of Canada for pharmacy stores to sell cigarettes and similar products on the same premises as over-the-counter drugs and prescription medication. Anti-tobacco campaigners advocate the removal of tobacco from pharmacies due to the health risks associated with smoking and the apparent contradiction of selling cigarettes alongside smoking cessation products and asthma medication. Some pharmaceutical retailers counter this argument by reasoning that by selling tobacco, they are more readily able to offer to customers advice and products for quitting smoking.
Boots UK Limited, trading as Boots, is a health and beauty retailer and pharmacy chain that operates in the United Kingdom. It also operates internationally, including Ireland, Italy, Norway, the Netherlands, Malta, Thailand and Indonesia.
Walgreens Boots Alliance, Inc. (WBA) is an American multinational holding company headquartered in Deerfield, Illinois, which owns the retail pharmacy chains Walgreens in the US and Boots in the UK, as well as several pharmaceutical manufacturing and distribution companies. The company was formed on December 31, 2014, after Walgreens bought the 55% stake in Alliance Boots that it did not already own. The total price of the acquisition was $4.9 billion in cash and 144.3 million common shares with fair value of $10.7 billion. Walgreens had previously purchased 45% of the company for $4.0 billion and 83.4 million common shares in August 2012 with an option to purchase the remaining shares within three years. Walgreens became a subsidiary of the newly created company after the transactions were completed. As of 2022, Walgreens Boots Alliance is ranked #18 on the Fortune 500 rankings of the largest United States corporations by total revenue.
Specialty drugs or specialty pharmaceuticals are a recent designation of pharmaceuticals classified as high-cost, high complexity and/or high touch. Specialty drugs are often biologics—"drugs derived from living cells" that are injectable or infused. They are used to treat complex or rare chronic conditions such as cancer, rheumatoid arthritis, hemophilia, H.I.V. psoriasis, inflammatory bowel disease and hepatitis C. In 1990 there were 10 specialty drugs on the market, around five years later nearly 30, by 2008 200, and by 2015 300.
Specialty pharmacy refers to distribution channels designed to handle specialty drugs — pharmaceutical therapies that are either high cost, high complexity and/or high touch. High touch refers to higher degree of complexity in terms of distribution, administration, or patient management which drives up the cost of the drugs. In the early years specialty pharmacy providers attached "high-touch services to their overall price tags" arguing that patients who receive specialty pharmaceuticals "need high levels of ancillary and follow-up care to ensure that the drug spend is not wasted on them." An example of a specialty drug that would only be available through specialty pharmacy is interferon beta-1a (Avonex), a treatment for MS that requires a refrigerated chain of distribution and costs $17,000 a year. Some specialty pharmacies deal in pharmaceuticals that treat complex or rare chronic conditions such as cancer, rheumatoid arthritis, hemophilia, H.I.V. psoriasis, inflammatory bowel disease (IBD) or Hepatitis C. "Specialty pharmacies are seen as a reliable distribution channel for expensive drugs, offering patients convenience and lower costs while maximizing insurance reimbursements from those companies that cover the drug. Patients typically pay the same co-payments whether or not their insurers cover the drug." As the market demanded specialization in drug distribution and clinical management of complex therapies, specialized pharma (SP) evolved.„ Specialty pharmacies may handle therapies that are biologics, and are injectable or infused. By 2008 the pharmacy benefit management dominated the specialty pharmacies market having acquired smaller specialty pharmacies. PBMs administer specialty pharmacies in their network and can "negotiate better prices and frequently offer a complete menu of specialty pharmaceuticals and related services to serve as an attractive 'one-stop shop' for health plans and employers."
GoodRx Holdings, Inc. is an American healthcare company that operates a telemedicine platform and free-to-use website and mobile app that track prescription drug prices in the United States and provide drug coupons for discounts on medications. GoodRx checks drug prices at more than seventy-five thousand pharmacies in the United States. The platform allows individuals to consult with a doctor online and obtain a prescription for certain types of medications at a cost of US$20, regardless of insurance status. Medical testing services, which vary in price, are also offered through the platform.
PillPack, Inc. is an American online pharmacy which is a subsidiary of Amazon. It is based in Manchester, New Hampshire, United States. The company was founded in 2013.
Walmart Inc. v. DEA-DOJ was a settlement involving the complaints and lawsuits of Walmart pharmacy, and other large pharmaceutical companies. The lawsuits were made after an official complaint issued by the United States Department of Justice and the Drug Enforcement Administration, after Walmart was accused of illegally selling opioids to their customers, despite prior laws prohibiting such actions.
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