Amazon's pharmacy business 'off to a good start,' CEO says

Amazon CEO Andy Jassy said its pharmacy business is "off to a good start" and fits into its larger mission of reshaping healthcare, according to a recent earnings call.

After Amazon Pharmacy launched in 2020, customers asked for a similar experience for healthcare, Mr. Jassy said in the April 27 call transcribed by Seeking Alpha.

"We're going to have a hard time convincing our grandkids that it used to be the case to get a primary care appointment, you had to call ahead of time, a month ahead to schedule an appointment and drive 20 minutes to the doctor and park and get into the facility and wait 20 minutes in reception," he said during the call. "And you get into an exam room, you wait 10 minutes for the doctor to come in. The doctor talks to you for 5 minutes and then prescribes you medicine where you drive 20 minutes to go get the medicine. And that experience just doesn’t make sense and won't be the case."

Mr. Jassy noted that Amazon Care, its former health service for employers, "didn't have the right business model" so the tech giant shifted its gaze to One Medical, which had a "very compelling" digital app, clinics with same- and next-day primary care appointments and relationships with medical specialists. Amazon bought One Medical in February for $3.9 billion.

Amazon reported increased revenue ($127.4 billion) and operating income ($4.8 billion) in the first quarter of 2023.

"And if we're successful with primary care and with health — and with pharmacy, there are a lot of other things we can help customers with as well," Mr. Jassy said in the call. "So we think that's a big opportunity."

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