The depressed prices by market competitors reflect the sentiment shared by Wall Street analysts who feel that Amazon’s entry into the marketplace will hurt market valuations for Walgreens, CVS Health and Rite Aid.
“We suspect Amazon’s official entry into the space will now place a cap on drug supply chain multiples regardless of whether or not Amazon is able to scale the PillPack business,” said RBC Capital Markets analyst George Hill. “While Amazon represents a significant new entrant in the space, we remind investors that Rxs are sticky and PillPack focuses on difficult to serve patients without access to adequate pharmacy services.”
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