Why Amazon's push into prescription drugs isn't a guaranteed success

Although Amazon has transformed the way Americans buy products as different as books and diapers, it may not have such an easy time with prescription drugs after its purchase of online pharmacy PillPack.

Although Amazon has transformed the way Americans buy products as different as books and diapers, it may not have such an easy time with prescription drugs after its purchase of online pharmacy PillPack. Nadina Rosier, the health and group benefits pharmacy practice leader at the consulting firm Willis Towers Watson, is skeptical that Amazon would link up with an established company. "It's looking to partner with other innovators, not just your standard vendors like your traditional PBMs," she says. Any partner "would have to be one that brings something to the table in an innovative way." The months of speculation have allowed competitors to prepare, acting as "a catalyst for participants to close ranks against competition and invest to improve the consumer experience," Eric Percher, an equity research analyst at Nephron Research, wrote in a research note last week.