Read on Twitter
1/7
At last! @amazon $AMZN finally gets serious #pharmacy https://drugch.nl/2UNdjqB
But it’s hedging bets by simultaneously (1) copying @goodrx $GDRX and (2) offering a truly disruptive option
Following tweets explain Amazon’s moves w/in context of crazy US drug channel
At last! @amazon $AMZN finally gets serious #pharmacy https://drugch.nl/2UNdjqB
But it’s hedging bets by simultaneously (1) copying @goodrx $GDRX and (2) offering a truly disruptive option
Following tweets explain Amazon’s moves w/in context of crazy US drug channel
2/7
Part 1: Copy @GoodRx $GDRX
Amazon Prime prescription savings benefit echoes GoodRx discount card. Both profit from a broken pharmacy pricing system (see https://drugch.nl/GoodRx-Aug2020 )
Notable: Amazon working w/InsideRx @expressscripts $CI … which also works with GoodRx!
Part 1: Copy @GoodRx $GDRX
Amazon Prime prescription savings benefit echoes GoodRx discount card. Both profit from a broken pharmacy pricing system (see https://drugch.nl/GoodRx-Aug2020 )
Notable: Amazon working w/InsideRx @expressscripts $CI … which also works with GoodRx!
3/7
Thus, prescriptions available via GoodRx and Amazon Prime are adjudicated by a #PBM
FYI: For brand-name drugs, Inside Rx passes through manufacturer discounts to uninsured patients. My article from 2017 still relevant: https://drugch.nl/2sQuFo5
Thus, prescriptions available via GoodRx and Amazon Prime are adjudicated by a #PBM
FYI: For brand-name drugs, Inside Rx passes through manufacturer discounts to uninsured patients. My article from 2017 still relevant: https://drugch.nl/2sQuFo5
4/7
Part 2: Disrupt system
Amazon Pharmacy is more disruptive b/c it bypasses insurance and #PBMs.
Amazon Pharmacy will likely focus on selling low-cost generics at cost-plus pricing, i.e., the true cash-pay model that I have been advocating for years
Part 2: Disrupt system
Amazon Pharmacy is more disruptive b/c it bypasses insurance and #PBMs.
Amazon Pharmacy will likely focus on selling low-cost generics at cost-plus pricing, i.e., the true cash-pay model that I have been advocating for years
5/7
If successful:
1. Other pharmacies will match generic prices
2. GoodRx and Amazon Prime will cease to be valuable for generic Rx
3. Big loss of generic profits from pharmacy industry
Amazon can finish the job started in 2006 by @walmart $WMT $4 generic Rx program
If successful:
1. Other pharmacies will match generic prices
2. GoodRx and Amazon Prime will cease to be valuable for generic Rx
3. Big loss of generic profits from pharmacy industry
Amazon can finish the job started in 2006 by @walmart $WMT $4 generic Rx program
6/7
However, the more disruptive solution requires a big change in consumer behavior b/c most people prefer to use insurance for low-cost, recurring expenses of generic Rx
But if Amazon can convert people to paying cash, then ongoing #pharmacy shakeout will accelerate
However, the more disruptive solution requires a big change in consumer behavior b/c most people prefer to use insurance for low-cost, recurring expenses of generic Rx
But if Amazon can convert people to paying cash, then ongoing #pharmacy shakeout will accelerate
7/7
I'll address Amazon & the future of pharmacy during my December 18 live video webinar: Drug Channels Outlook 2021
Sign up here: https://drugch.nl/outlook2021
I'll address Amazon & the future of pharmacy during my December 18 live video webinar: Drug Channels Outlook 2021
Sign up here: https://drugch.nl/outlook2021
