Amazon drug sales could ‘blow the entire ecosystem apart’

As the health care industry transitions to a more consumer-centric model, Amazon (AMZN) could represent a key piece of the puzzle that may eventually cut out the need for pharmacies altogether.

On Tuesday, Merck (MRK) CEO Kenneth Frazier said that Amazon could be helpful for his company as it seeks to streamline drug distribution processes.

“We’re in the business of inventing new drugs, composition of matter. That’s the distribution side of the business. It could be helpful depending on how it rolls out. I think the critical issue here … [is] how do we get more efficiency in the distribution system, and how do we pass those efficiencies on to patients so that they can enjoy the savings and find medicines more affordable?” Frazier told FOX Business’ Maria Bartiromo on “Mornings with Maria.”

Amazon has already reportedly secured pharmacy-wholesaler licenses in more than a dozen states and even held preliminary discussions with drug makers. But what stands to make the e-commerce giant a true disruptor in the industry is its biggest strength – an extensive delivery network, Dedi Gilad, CEO of telehealth company Tyto Care, told FOX Business.

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