Which healthcare segment is at biggest risk at losing marketshare due to Amazon? How do you think Amazon will impact the industry in the next 5 years?

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Retail Pharmacy

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I don’t think it’s retail pharmacy. Yes they will be affected a little but not nearly as much as wholesalers. Here is why -

1. Manufacturers- Amazon can’t replace them, yet

2. Retail Pharmacies - not everyone, specially the old (sicker) demographic) is completely bought into e-commerce and most people can’t wait for 2 days medicines to be shipped. Many want to buy meds as soon as they have left the doctors clinic. However there will be some shift to Amazon amongst people who are buying long term/ recurring doses and the ones who have already moved on to virtual doctors for non severe conditions. There will be greater impact where regulations and Amazon can support 2 hr drone deliveries.

3. Wholesalers - Amazon has the capabilities to replace them right now! Drug wholesalers have 2 primary value adds. 1) extensive distribution network 2) Deep pockets to support purchase/ resale large volume transactions. Amazon can beat them in both of these areas. There are some nuances but thats a story for another day.

likesmart

If you have the patient, you have their health data. This cannot be directly monetized but you can certainly roll up data related to macro treatment data for diabetes, COPD, heart failure, and other chronic conditions which lend themselves to the efficacy of the “multi-pack” use case.

What is the use case for this macro data vs the specific micro data of the Pillpack patient populations?

Think Walgreens and CVS and their super complex retail pharmacy and PBM operations. So much to be simplified.

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EMR/Software, IT Infrastructures, and Business Supply.

IBM and others will lose extensive server/infrastructure share.

Either Cerner, Lawson or a subset if that marketshare will get gobbled up by web based architecture and applications.

Transcription and data entry seevices is an area already getting squeezed.

Non and light medical supply from suppliers like WB Mason is already shrinking in non acute facilities where Amazon is lower cost product and ordering platform.

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