Jeff Bezos is redirecting Amazon to head back into the healthcare sector, as a distributor for prescription-drugs. This, however, poses a plethora of obstacles such as licensing, third parties (health insurers), and so on.
Many health-care industry officials and advisers believe Amazon, if it opted to enter the market, would probably seek to join with or buy a company with systems already in place for processing prescriptions and then integrate those systems into its online shopping.
Amazon's success in this sector comes down to a middleman. With Amazon being so dependent on this key factor, "a company with systems already in place for processing prescriptions" could potentially experience high profit margins.
Are there any examples of such companies that come to mind?
HD Smith will be the likely target.
Do you think a future acquisition of HD Smith by Amazon is in store for the future?
Also, why do you say HD Smith over one of the Big 3 - McKesson, Amerisource Begen, and Cardinal?
Big 3 would be too expensive and that's who they're targeting. Chipping away at their share and margins is the commercial opportunity here. HD Smith is big enough to provide the network required but not too big to warrant a massive acquisition price.
Players are fed up with Big 3 and the market is wide open for disruption.
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