Goldman Sachs released a 30-page report from five research analysts describing approaches Amazon may take to break into the pharmaceutical industry, CNBC reports.
The report follows recent news on the company's alleged strides into healthcare, which include launching its secret health team 1492, hiring Box executive Missy Krasner and attempts to expand into the drug and medical device supply distribution sector.
Here are five predictions by Goldman Sachs, as reported by CNBC.
1. Amazon may initially partner with a pharmacy benefits manager — rather than attempting to replace pharmacies — in order to provide "access to patient data and the potential to cross-sell related products."
2. Amazon may become either an online pharmacy; retail and online pharmacy; integrated PBM and online pharmacy; or handle drug distribution to pharmacies.
3. The online retailer will likely start by speeding the drug delivery process, but may eventually seek to improve price transparency and reduce overall out-of-pocket drug costs, as well.
4. Amazon may encounter unintended challenges since it caters to younger, healthier people, instead of those who typically take prescription drugs.
5. The company may enhance its smart-speaker Echo technology for clinical settings to develop telemedicine and remote patient monitoring tools.
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