Very Interesting article from Pharmacy News re Sigma and a...

Very Interesting article from Pharmacy News re Sigma and a possible Amazon partnership. Now that would give the SP a kick along I would think?



Is Amazon looking for an Australian pharmacy partner?

21 August, 2017


Is Amazon likely to team up with Sigma when the online giant arrives in Australia?
That’s the speculation following a Goldman Sachs report that says partnerships would be the best strategy for entering local drug markets.
Opening its own online pharmacy is the next best option, says the Goldman Sachs report.
But the logical move in Australia would be a partnership with Sigma, says Jason Aravanis, a senior analyst consultants IBISWorld.
And options presented in the King interim report could make it easier for the international giant to disrupt the local market.
Asked for comment, Sigma CEO Mark Hooper said the company needed to review all “potential risks and opportunities” associated with Amazon’s arrival in Australia.
“It is a change that can't just be ignored."
Mr Aravanis says a local partnership would be a good way to overcome Australian regulatory barriers.
Amazon teamed up with other companies, notably Bartell Drugs in the US, which now sells through Amazon Prime.
Sigma has experience with cross-border alliances, having entered the Chinese market in partnership with the Azoya Group, a local distributor and ecommerce specialist.
“If Amazon were to partner with Sigma in a similar set-up to [Bartell], then it may seek to use Sigma's banner pharmacy chains like Amcal or Discount Drug Stores to help fulfill its online ordering and delivery service within set geographic markets,” says Mr Aravanis.
While speed of delivery is important for scripts issued for short-term ailments, it is less of an issue for repeat prescriptions for chronic conditions, he says.
Mr Aravanis says some of the options in the King interim report could also “fuel the conditions” for further disruption to community pharmacy by companies like Amazon.
These include allowing online pharmacies to dispense from electronic prescriptions.
“Rather than attempt to compete with the likes of Amazon on price, traditional pharmacies should emphasis their customer-centric advice and healthcare services,” he says.