Walmart fighting Amazon for pharma dominance.
Things are heating up in the pharmaceutical space again. After Amazon announced their interest in taking over the Pharma space last year, (Some Good News Mylan Pharmaceuticals Received From Amazon) there are talks brewing between Walmart and Humana.
Like in everything, there are no guarantees that these talks will come to fruition. But this sets up to be a fight between Walmart and Amazon for pharma dominance. Humana was up 11% afterhours on that news.
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There have been a lot of major mergers in the space. The one that major deal that comes to mind was when CVS bought Aetna late last year. That deal was worth a whopping $69 Billion.
The Walmart/Humana partnership would be a good one. Already having a large pharmacy business with many outlets, Walmart needs to keep up with Amazon on many fronts. While online is dominating people’s wallets, for now, retail keeps on fighting a good fight. Walmart’s partnerships with the Chinese e-commerce company JD.com will attest to this notion, as they recently invested in Wanda Commercial.
What also helps, and could be a hindrance if not used properly, is that Walmart has a lot of people working for their company. Taking over an insurer is smart from that front as well.
Most people, for now, feel more comfortable to purchase/pick up their medicine over a counter. It will take a lot of persuasion, from the likes of Amazon, to calm people’s anxiety concerning medicine online purchases.
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