Amazon may be factor behind rumored CVS, Aetna merger
CVS Health and fitness (CVS) is claimed to become in talks to acquire Aetna (AET) for $66 billion in a blockbuster merger that might reshape the well being insurance policy sector. And one of the variables rumored to get driving the offer is Amazon (AMZN, Tech30).
The Wall Road Journal reports the merger is no less than partly meant to guard in opposition to the specter of Amazon entering the pharmacy market place.
Both CVS and Aetna have declined to touch upon the rumored deal.
In current months, there’s been a drumbeat of experiences about Amazon’s curiosity in promoting prescribed drugs as part of its bottomless ambition to provide each and every purchaser product or service and repair conceivable.
As analysts at Goldman Sachs put it in a single trader observe this summer, “Imagine daily after you can inquire Alexa to possess your Lipitor refill arrive at your step in underneath two hrs.”
It could sound like a extend to get a company that started out as an online bookseller. But Amazon now owns the full Foodstuff grocery chain and is testing its have corner retailers. In addition, it offers one-hour supply in certain markets. That most likely puts it within a potent position to provide prescribed drugs online and offline.
On an earnings phone in August, CVS CEO Larry Merlo tried to participate in down the threat of Amazon as a competitor.
Related: Are prescription drugs another concentrate on for Amazon?
“There are many boundaries to entry when you are hunting at pharmacy,” Merlo explained within the get in touch with. “It’s really regulated, therefore the obstacles to entry are significant.”
Amazon may possibly be scaling individuals boundaries, nonetheless. On Thursday, the St. Louis Post-Dispatch reported Amazon had gotten the green light for wholesale pharmacy licenses in at least a dozen states. Get more accurate information