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Professor Terry Discusses Amazon Pharmacy Strategy in Indianapolis Business Journal
02/22/2019
Amazon took its first step into the pharmacy-distribution business last June when it acquired Boston-based PillPack, an online pharmacy, but the deal is likely part of a much larger strategy that will impact both online and retail pharmacy landscapes.
That’s according to a story in the Indianapolis Business Journal, which included an interview with Nicolas P. Terry, Hall Render Professor of Law and executive director of the William S. and Christine S. Hall Center for Law and Health.
“I think one of the ways Amazon works is to kill you with 1,000 cuts,” Terry said.
“First, it buys PillPack. Then it expands its pharmacy business generally. Then it adds ordering and renewal with Alexa (the company’s hands-free virtual assistant). Then it slowly squeezes suppliers to try and get better and better costs as its market share goes up. Then at some point, it becomes a dominant player.”
