Amazon is considering entering Japan's prescription drug market in 2023, report says
- Amazon is considering a foray into Japan's prescription drug sales business, Nikkei reported.
- Amazon said in July that it planned to acquire primary care startup One Medical for $3.9 billion.
Amazon is considering a foray into Japan's prescription drug sales business with plans to launch a service in the country next year, according to a report from Nikkei on Monday that cited people involved with the project.
The plans would be a sign that the US-based online retail giant is seeking to further expand its healthcare capabilities after it announced its planned acquisition of primary care company One Medical for $3.9 billion.
Amazon's Japan business, based in Tokyo, declined to comment to Nikkei.
Customers in Japan would use Amazon's service to get prescriptions delivered, rather than going to a pharmacy, according to Nikkei's report. Amazon would not operate its own pharmacies or carry its own inventory, the report said. The company would work with small- and medium-sized pharmacies in Japan and use its delivery network to get drugs from pharmacies to customers' homes.
Amazon is already active in the online pharmacy business. In 2018 the company acquired the startup PillPack, which it turned into its Amazon Pharmacy business.
Amazon has also faced challenges in its healthcare-related ambitions.
The company said in August that it would shutter Amazon Care, its urgent care and primary business. Insider reported that current and former employees believe a culture clash between tech and healthcare gave way to the unit's failure.
A spokesperson told Insider that the company is "proud of the work we've done, and will continue to invent, learn from our customers and industry partners, and hold ourselves to the highest standards as we further help reimagine the future of health care and the role Amazon can play."
Japan could represent a growth opportunity for Amazon. As of 2020 there were some 60,000 pharmacies selling prescription drugs in Japan, up 10% in the past decade, Nikkei reported.