FDA Commissioner Scott Gottlieb means Amazon’s new push into health care is just fine because anything that sanctions much needed products, like pharmaceuticals, more accessible to consumers and lowers tariffs is a positive.
“Disruptive competition is a good thing,” Gottlieb said Friday in an talk with with CNBC’s “Squawk Box.”
“The supply chain, the intermediaries, are a cost on the pattern. So, seeing more competition into that marketplace will daily help bring down costs, maybe promote use of generics.”
Amazon declared plans on Thursday to acquire online pharmacy start-up PillPack, instanter sending shares of drugstore operators and drug distributors tanking.
PillPack, which orders and delivers packages of medications for consumers, is licensed to ship prescriptions in 49 alleges.
The move, which is the strongest indication yet of Amazon’s intent to push then again into health care, threatens to remove to one of the few distinguishing factors pharmacopoeia chains have relied on to fend off the online retail giant — the on sale of prescription drugs.
Gottlieb, who has a background in venture capital, said there compel still be an important role for brick-and-mortar pharmacies and “incumbent players” in fettle care.
“If you’re picking up your things in the pharmacy, you’re also picking up other things as personally,” Gottlieb said. “My sense is this is going to be a slower evolution in the furnish towards disruptive systems. There’s a reason why a lot of the incumbent players accept built a lot of market share here.”
Ana Gupte, senior health fancy services analyst at Leerink Partners, advised clients to remember that Amazon’s get into the pharmaceutical space won’t happen over night. However, she voted the stock plunges Thursday on Amazon’s news was “rational.”
“It’s going to accompany a long time,” Gupte told “Squawk Box.” “Maybe they get 5 percent make available share after quite a while. But that threat will be there and they on grow share over time.”
Gupte expects the new service devise also attract Amazon’s Prime members to its other products, rephrasing it’s a “pretty good cross sell move.”
—CNBC’s Angelica LaVito gave to this report.