{"id":114576,"date":"2020-11-18T16:04:00","date_gmt":"2020-11-18T13:04:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/amazon-pharmacy-poses-a-risk-but-cvs-could-be-up-for-the-challenge\/"},"modified":"2020-11-18T16:04:00","modified_gmt":"2020-11-18T13:04:00","slug":"amazon-pharmacy-poses-a-risk-but-cvs-could-be-up-for-the-challenge","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/amazon-pharmacy-poses-a-risk-but-cvs-could-be-up-for-the-challenge\/","title":{"rendered":"#\n  Amazon Pharmacy poses a risk but CVS could be up for the challenge"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6aef61c0d5e6a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6aef61c0d5e6a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/amazon-pharmacy-poses-a-risk-but-cvs-could-be-up-for-the-challenge\/#Amazon_Pharmacy_builds_on_the_companys_2018_acquisition_of_PillPack\" >Amazon Pharmacy builds on the company&#8217;s 2018 acquisition of PillPack<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/amazon-pharmacy-poses-a-risk-but-cvs-could-be-up-for-the-challenge\/#Tonya_Garcia\" >Tonya Garcia<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Amazon Pharmacy poses a risk but CVS could be up for the challenge<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000071764\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.71875%;\" data-mobile-ratio=\"66.71875%\" data-layout-ratio=\"66.71875%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-261215?width=140&amp;size=1.4988290398126465 140w,\nhttps:\/\/images.mktw.net\/im-261215?width=540&amp;size=1.4988290398126465 540w,\nhttps:\/\/images.mktw.net\/im-261215?width=620&amp;size=1.4988290398126465 620w,\nhttps:\/\/images.mktw.net\/im-261215?width=700&amp;size=1.4988290398126465 700w,\nhttps:\/\/images.mktw.net\/im-261215?width=860&amp;size=1.4988290398126465 860w,\nhttps:\/\/images.mktw.net\/im-261215?width=1260&amp;size=1.4988290398126465 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-261215?width=620&amp;size=1.4988290398126465\" data-enlarge=\"https:\/\/images.mktw.net\/im-261215?width=1260&amp;size=1.4988290398126465\" alt=\"\" title=\"Amazon Pharmacy builds on the company's 2018 acquisition of PillPack\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Amazon_Pharmacy_builds_on_the_companys_2018_acquisition_of_PillPack\"><\/span>Amazon Pharmacy builds on the company&#8217;s 2018 acquisition of PillPack<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Amazon<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       Amazon Pharmacy is a business threat to major players in the pharmacy retail business, but Bank of America analysts think CVS Health Inc.<br \/>\n        CVS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209664499\/composite\" class=\"negative\">-8.61%<\/bg-quote><br \/>\n       could be up for the challenge.<\/p>\n<p> Amazon.com Inc.<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"positive\">+0.14%<\/bg-quote><br \/>\n       announced the launch of Amazon Pharmacy on Tuesday, offering customers the option to use a pharmacy profile on the company\u2019s site to add insurance information, manage pre<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ions and pay for medication online. <\/p>\n<div class=\"paywall\">\n       Prime members will have the benefit of unlimited, free two-day delivery and discounts when not using insurance, including up to 80% on generic drugs.  <\/p>\n<p>The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> sank CVS and Walgreens Boots Alliance Inc.<br \/>\n        WBA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203410933\/composite\" class=\"negative\">-9.72%<\/bg-quote><br \/>\n       stock, with both down 8.6% in Tuesday trading. <\/p>\n<p>Whenever Amazon sets its sites on a category, it poses a risk to other players.  Amazon purchased PillPack, a prescription company focused on consumers who take multiple medications, back in 2018.  And even before that, experts were predicting Amazon\u2019s move into the pharmacy space.  <\/p>\n<p><strong>Read:<\/strong>  Amazon Prime day gives lift to U.S. retail sales in October, but more pandemic pain awaits <\/p>\n<p>However, Bank of America analysts think CVS can stand up to<br \/>\nthe e-commerce giant.<\/p>\n<p>\u201cUltimately we have said time and time again that companies across the channel need to adapt to a changing landscape,\u00a0and we see CVS as being better positioned along those lines given the Aetna merger and both the broader enterprise offering and revenue diversification that an integrated medical\/pharmacy services\/retail offering provides,\u201d analysts  wrote  in a Tuesday note.<\/p>\n<p>Bank of America rates CVS shares buy with an $83 price<br \/>\nobjective.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>CVS finalized its $70 billion Aetna  acquisition  in Nov. 2018.  <\/p>\n<p>CVS reported third-quarter earnings on Nov. 6, beating the FactSet consensus for profit and revenue and announcing a new chief executive, Karen Lynch, currently the president of Aetna. Lynch assumes the role on Feb. 1.  <\/p>\n<p>On the earnings call, current Chief Executive Larry Merlo talked about the transformation of the company into \u201ca new kind of diversified health services company\u201d over his decade-long tenure. That includes the removal of tobacco products, the addition of MinuteClinic locations, investment in high-growth pharmacy areas and a focus on Latino consumers.<\/p>\n<p><strong>Watch: <\/strong> 3 ways the pandemic has changed the medical sector <\/p>\n<p>\u201cWe are accelerating elements of our strategy with<br \/>\ninnovative health care offerings that address the evolving consumer landscape,<br \/>\nproviding both personalized and connected care that deliver better health<br \/>\noutcomes,\u201d he said on the call, according to the FactSet transcript. This<br \/>\nincludes customer access both in stores and online.<\/p>\n<p>CVS has also been focused on addressing issues like COVID-19, with the company already looking for ways to administer the vaccine when it becomes available; creating a program just for those with diabetes; and driving efforts to make pharmacists more involved with patient care.<\/p>\n<p>\u201c[O]ur fundamental view on CVS remains\u00a0unchanged: an<br \/>\nimproving enterprise profitability story, driven by an integrated<br \/>\npharmacy\/medical offering and a store reboot that will repurpose square footage<br \/>\nthat had become suboptimal and convert to higher-touch HealthHub and other<br \/>\nhealth services models,\u201d wrote Bank of America in a Monday note.\u00a0<\/p>\n<p>\u201cThis could also be complemented over time by incremental contribution from the start of the COVID vaccination process, where CVS is likely to be a key partner during the roll-out.\u201d<\/p>\n<p>After earnings were announced, Raymond James analysts also reiterated its strong buy stock rating and $90 price target. CVS is on the analyst group\u2019s \u201cCurrent Favorites\u201d list.<\/p>\n<p>\u201cOverall, we continue to like shares of CVS given the diverse business mix and continued solid execution,\u201d analysts said.<\/p>\n<p><strong>Also:<\/strong>  Coronavirus update: Republican governors are dropping resistance to face masks as infections soar and hospital beds fill <\/p>\n<p>Amazon should also be prepared to face stiff competition,<br \/>\nexperts say.<\/p>\n<p>\u201cSimilar to its foray into food,\u00a0Amazon\u00a0will find itself facing formidable,<br \/>\ndeeply-embedded competitors with voluminous store networks that are currently<br \/>\nbeing heavily-leveraged to support drive-thru pick-up and home delivery,\u201d said<br \/>\nCharlie O\u2019Shea, Moody\u2019s lead Amazon analyst.<\/p>\n<p>\u201cThat said, given\u00a0Amazon\u2019s patient shareholder base, the company will<br \/>\nbe able to absorb whatever costs necessary to grow this segment into a<br \/>\nmeaningful competitive position.\u201d<\/p>\n<p>And CVS and Walgreens aren\u2019t the only big<br \/>\ncompetitors building business in the healthcare and pharmacy space.<\/p>\n<p>\u201cWith Walmart doubling down on a physical presence for healthcare, we could soon see an addition to the Walmart Plus program for pharmacy delivery in attempt to compete with\u00a0Amazon\u2019s new Prime coverage,\u201d said Arielle Trzcinski, Forrester senior analyst.<\/p>\n<p>Walmart<br \/>\n        WMT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207374728\/composite\" class=\"negative\">-2.01%<\/bg-quote><br \/>\n       reported its fiscal third-quarter earnings on Tuesday. The Walmart+ program was only launched in September so executives didn\u2019t provide an update.<\/p>\n<p>One advantage that Amazon might have could run afoul of<br \/>\nregulations, Forrester said.<\/p>\n<p>\u201cWhat I don\u2019t see called out in this announcement are the<br \/>\nimplications for HIPAA-compliant Alexa skills,\u201d Trzcinski said, referring to<br \/>\nAmazon\u2019s AI <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>.<\/p>\n<p>\u201cCompanies like Cigna<br \/>\n        CI,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208431372\/composite\" class=\"negative\">-1.59%<\/bg-quote><br \/>\n       and Express Scripts had already tapped Alexa to support members in home with the ability to say, \u2018Alexa, order refills of my prescription.\u2019 If this data is integrated with Alexa, this could make easy reminders to both take medications and order refills a reality.\u201d<\/p>\n<p>Amazon stock has gained nearly 70% for the year to date. CVS has fallen 9.6%. And the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.47%<\/bg-quote><br \/>\n       has rallied 11.7% for the period.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Tonya Garcia\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Tonya_Garcia\"><\/span>Tonya Garcia<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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