In a bid to increase revenue from the sales of new weight loss drugs, Amazon’s pharmacy business has been expanding its physical presence. After facing challenges in the U.S. healthcare market since its launch in 2020, the company announced a partnership with Eli Lilly in March to deliver the weight-loss drug Zepbound. Additionally, Amazon Pharmacy expanded its same-day pharmacy delivery service to New York City and greater Los Angeles.
Amazon Pharmacy vice-president John Love expressed optimism about the revenue potential of weight loss drugs like Zepbound. To support these expanded delivery services, Amazon opened its first physical location in California on May 29. Located next to an Amazon fulfillment center in Corona, California, this location serves as a hub for same-day deliveries and is one of twelve locations nationwide, in eight different states including New York, Indiana, Texas, and Florida.
The move by Walmart to close all of its 51 health centers due to profitability issues highlights the challenges facing the pharmacy market. While Walmart still operates 4,600 pharmacies across the country, the closure of health centers underscores the pressure major players like Amazon are under to capture a larger share of the prescription drug market. Despite these challenges, Amazon remains confident in its ability to grow its pharmacy business and capture more market share.
