Now Amazon needs to focus on Pharma. If the FTC denies the Walgreens/Rite Aid purchase I would look for Amazon to strike pretty fast within six months. Rite Aid would be a great addition to this concept of lite bricks and mortar. While the ultimate goal for Amazon is not to be in the real estate business you have to be there to be in the Pharma business as people need prescriptions immediately in 50% of the prescription orders. The rest of them can be satisfied by mail order. Amazon ones in the PBM business because there are hundreds of millions of dollars available to service.
Purchasing Rite Aid makes great sense when you consider that they all ready service millions of Americans on a daily basis. These are instant cash paying customers who can help them build the largest pharmacy network in the world. So paying $10 a share for a ride aid would be a bargain entry point for Amazon.
For that investment they get a open running PBM and cash flow from the retail stores. They would not have to divest any locations since there would be no conflict of interest for the FTC to get upset about.
Again they would play the disrupter like they have to the grocery market with whole foods. Walgreens, target, CVS Caremark, Walmart, would be behind the eight ball with an Amazon pharmacy entry by purchasing Rite Aid.
I am long Rite aid and personally would love to see the deal with Walgreens get denied by the federal trade commission since it would open the door for Amazon to swoop in and buy the company.
I believe that this company is going to take over the world and Jeff Bazos can't be denied at this time. He knows the right timing to make deals.
