Notably, Apollo Pharmacy is reported to be India’s first and largest branded pharmacy network that has over 3000 plus outlets in key locations.
After the successful launch of Amazon Pharmacy Services last month, Amazon.com Inc (NASDAQ: AMZN) is reported to eye India’s Apollo Pharmacy for a whopping $100 million.
Notably, Apollo Pharmacy is reported to be India’s first and largest branded pharmacy network that has over 3000 plus outlets in key Locations. Additionally, it is part of Apollo Hospitals – Asia’s largest healthcare group.
Hereby making Amazon possible investment a strategic entry that could raise the competition to the next level. Reportedly, Amazon is looking to face India’s Reliance Industries Ltd and Tata Group that have dominated the country’s drug market.
In a bid to widen its revenue source, Amazon has not only been venturing new markets but also introducing new services. Led by billionaire Jeff Bezos, the company has been one of the best performing during the coronavirus pandemic.
According to the data provided by MarketWatch, Amazon shares have rallied Approximately 71.95% year to date. However, they have been consolidating in the past three months. Notably, the company has a market valuation of $1.58 trillion with 501.75 million outstanding shares in the market. The huge cash reserve has enabled the company to invest in different markets and make notable acquisitions during the pandemic. As a result, the company has been accused of misusing its market dominance by suppressing smaller capped competitors.
The entrance of Amazon into the Indian pharmaceutical through Apollo Pharmacy will be largely monitored by regulators as the Indian market is largely contested by different companies. Among them is Mukesh Ambani’s Reliance, which bought a majority stake in online pharmacy Netmeds.
Although the respective companies have not confirmed the investment, other companies are expected to raise their level of drug quality to remain competitive. Notably, having been in the market for over two decades, Apollo Pharmacy has been noted to offer genuine drugs as it also provides Customer Care any time of the day.
Apollo and Amazon working together can revolutionize the entire drug chain in India and thus improve the general health system.
Reportedly, Amazon customers in India who make use of Prime will be eligible for two-day delivery of medications and price cuts on both generic and brand-name drugs. Particularly, Prime members can get discounts of up to 80% on generic drugs and 40% on brand-name medications when paying without insurance, according to Amazon Pharmacy services.
As different multinational pharmaceutical companies work on finalizing their coronavirus vaccines, the supply chain ecosystem is preparing to step up the process in the coming years. Amazon and Apollo pharmacy might be preparing for the upcoming supply chain and mutually benefit its shareholders.