Why drugmakers would welcome Amazon's pharmacy entrance

Rumors of Amazon's potential entrance into the pharmacy market have already sent drug distributors' and retail pharmacies' stock falling. However, the drug industry would gladly welcome the move, according to CNBC.

Many drugmakers believe Amazon's market entrance would positively disrupt the distribution system and create a more efficient pharmaceutical supply chain.

"Just like science is disrupted with gene therapy or novel treatments, I think the drug distribution channel also should be disrupted with improvements based on technology or efficiency," Allergan CEO Brent Saunders said Wednesday during a call with analysts, according to CNBC.

Pfizer CEO Ian Read told CNBC Tuesday the company has not had direct conversations with Amazon, but is "more than willing to talk to anybody who can ensure" the efficiency of the drug distribution system.

Other drugmakers believe Amazon's entrance could also reduce pharmacy benefit manufacturers' role and power in the current drug supply chain.

"We'd be fools not to consider anyone who can disrupt the insurance/PBM stranglehold these companies have over patients and us," a third drug company CEO, who wished to remain anonymous, told CNBC.

More articles on supply chain:

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