Visit
for coverage from TIME, Health, Fortune and more
Go »

Amazon’s Next Big Disruption May Be the Pharmacy Business

May 17, 2017

Amazon has changed the face of how Americans (and the world) shop, interact with the web, and even consume media. Now, the tech and e-commerce titan may be looking to get into the challenging health care market with a play for the pharmacy industry.

CNBC reported late Tuesday that Jeff Bezos's multifaceted company has been taking on pharmaceutical talent. That includes both the hiring of a general manager to lead a potential unit and other prospects from the pharmacy sector, according to sources. Fortune has reached out to Amazon and will update this post if we receive a response, although the company has declined to comment to other outlets.

Click here to subscribe to Brainstorm Health Daily, our brand new newsletter about health innovations.

Shares of potential rivals in the retail pharmacy space reacted on Wednesday. Both CVS Health and Walgreens were down more than 3% in afternoon trading.

But while a formidable operation like Amazon's could spook any rivals (and their investors), getting into the industry won't exactly be easy. Drug distribution is far more challenging and susceptible to regulatory headaches than shipping most standard commercial goods.

That's part of the reason some analysts say it's too early to tell whether or not Amazon will really plunge into this business—the new hirings could simply signal a pilot program which may not last. Still, Amazon muscling into the complex and increasingly consolidated pharmacy market could reshape yet another field.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions