Supply chain leaders worried about potential market entry of Amazon

The possibility of Amazon expanding its services into digital health has many industry insiders worried, according to CNBC.

"I get asked all the time what Amazon is doing," said Tom Rodgers, managing director of San Francisco-based medical investment firm McKesson Ventures. "Everyone in the supply chain is nervous. It's a low-level paranoia that Amazon will drive down profitability."

Amazon recently hired Missy Krasner, former vice president and managing director of the healthcare and life sciences groups at cloud sharing company Box, which has fueled much of the recent speculation. Mr. Rodgers believes Amazon's first big move could be into the world of pharmaceutical distribution.

"I wouldn't be surprised to see them partner with a pharmacy home delivery company first and let them deal with the regulation and operating burden," Mr. Rodgers said. "Only after they prove they can deliver demand, then (Amazon could) make their own investments."

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