Amazon expected to sell prescriptions online, shake up drug industry

(Photo: LEON NEAL/AFP/Getty Images)

Drug retailers are on edge after reports were released Friday that online giant may venture into selling prescriptions via the internet, according to Bloomberg.

Shares of Walgreens Boots Alliance Inc (WBA.O), CVS Health Corp (CVS.N) and Rite Aid Corp (RAD.N) took a tumble after news of the possibility spread, stirring a panic that could take a huge bite out of sales at existing retailers.

In a letter to clients, brokerage firm Leerink analyst Ana Gupte wrote that Amazon has been assessing the drug retailing market and hiring experts in the field to flesh out the venture.

“We are convinced that AMZN will almost certainly enter the drug distribution value chain within 2 years, evolving into a more disruptive offering over time,” Gupte said.

It’s expected that Amazon will make an official announcement regarding the project by Thanksgiving 2017.

A spokesperson for the company declined comment.