SEATTLE — Amazon.com has dropped a plan to sell pharmaceutical products to hospitals due to the project’s complexity, reported CNBC, citing sources familiar with the matter.
The setback illustrates the challenges Amazon faces in getting into the medical supply and pharmaceutical space, CNBC reported. Amazon has struggled to convince hospitals to alter a purchasing process that rests on middlemen and loyal relationships, reported CNBC.
Moreover, Amazon’s warehouse and logistics infrastructure is not set up to store and deliver temperature-sensitive pharmaceutical products, CNBC’s sources pointed out, and hospitals are reluctant to use Amazon as a supplier as long as it lacks these capabilities.
CNBC asserted that Amazon hasn’t totally ruled out the idea of selling and distributing pharmaceutical products, citing published reports that the company is considering entry into the direct-to-consumer prescription drug business.