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Amazon is in exploratory talks with generic-drug makers in the US

But sources agree Amazon’s plans remain vague, and some are skeptical that the e-commerce giant will pull the trigger

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Photo: REUTERS/Kim Kyung-Hoon

By Meg Tirrell and Christina Farr

Amazon has held preliminary talks with makers of generic drugs in the US about its potential entry into the pharmacy space, according to people familiar with the discussions.

The conversations, including with generics giants Mylan and Sandoz, a unit of Novartis, have been high-level, and the nature of Amazon’s plans isn’t yet clear, said the people, who asked not to be named because the discussions aren’t public.

Shares of Mylan were up nearly 2.5 per cent in after-hours trading.

Health care investment bank Leerink confirmed in a note to investors on Thursday that Sandoz’ Peter Goldschmidt at a recent biopharma event “met and discussed with Amazon its plans for getting into the U.S. healthcare market.” But it was not made clear whether Amazon will enter as a drug wholesaler, meaning business-to-business, or sell generic medications as a retailer.

Sandoz also said it does not expect Amazon to have a “major impact” on its business.

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