Drug suppliers’ stocks jump as Amazon retreats from drug distribution

 Many U.S. drug suppliers saw their stock prices rise April 16 following the news Amazon dropped its plan to sell and distribute pharmaceutical products to hospitals, reports Reuters.

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McKesson, AmerisourceBergen and Cardinal Health’s stock each increased 2 to 3 percent April 16. Walgreens Boots Alliance and CVS Health’s stock both jumped about 5 percent.

Amazon’s retreat from drug distribution stems from its inability to convince hospitals to follow different purchasing processes for pharmaceuticals, unnamed sources told CNBC. Instead, the Amazon Business unit will focus on selling less sensitive medical supplies to smaller hospitals and clinics.

Amazon declined Reuters‘ request for comment.

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