Amazon.com, Inc. (NASDAQ:AMZN) stock is up 12% since releasing its third quarter results on October 26. Founder and CEO Jeff Bezos officially became the richest person in the world after the stock spiked following the earnings report. Amazon saw net sales jump 34% to $43.7 billion in comparison to $32.7 billion in Q3 2016. However, perhaps the biggest story regarding the e-commerce retail giant is the headway it is making as it seeks to enter the prescription drug market.
St. Louis newspaper the St. Louis Dispatch reports that Amazon has been approved for wholesale licenses in 12 U.S. states. The prescription drug market would mark another frontier for Amazon soon after buying Whole Foods Market, Inc. and shaking the grocery industry in North America.
Retail pharmacy and health company CVS Health Group (NYSE:CVS) stock is down 10% since the report broke. According to the Wall Street Journal CVS is now advancing towards the possible acquisition of healthcare company Aetna Inc. in a deal that could be worth over $60 billion. In theory the deal would give CVS Health more flexibility in competing with the lower costs that Amazon could offer.
The news comes as a slew of traditional brick-and-mortar retailers have fallen in the wake of Amazon’s meteoric rise. Traditional grocers in Canada and the U.S. also saw shares dip following the Whole Foods purchase. Amazon’s foray into healthcare once again demonstrates its wide reach and broadening influence across industries.
