Amazon on Nov. 17 launched a new online pharmacy allowing patients to purchase their prescriptions through the retail giant’s website, offering discounts and free two-day delivery to Prime members. By the market close that day, Walgreens Boots Alliance shares dropped 9.6 percent, CVS Health shares dropped 8.6 percent and Rite Aid shares dropped 16.2 percent.
During the conference, Mr. Kehoe called these declines “disappointing.” He acknowledged Amazon as a serious competitor, but pointed out that their offering is only online. He also said mail prescriptions account for only about 10 percent of those written in the U.S.
Mr. Kehoe said he believes people are remaining loyal to physical pharmacies, and Walgreens has more than 9,000 locations where they can pick up their prescriptions or receive a vaccine.
“When you want to get your COVID vaccination, are you going to call Amazon or are you going to call Walgreens or CVS?” he asked during the conference.
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