Amazon could lower the cost of prescriptions, experts say

Posted at 6:19 AM, Oct 18, 2017
and last updated 2017-10-18 08:23:53-04

DENVER -- While President Donald Trump reiterated his goal to lower the cost of prescriptions on Monday, experts say if Amazon gets into the prescriptions distribution business that it could have a big impact.

President Trump said in a press conference on Monday that his administration will work to get prescription drug prices "way down". 

No word on what exactly will happen or when. 

But, that argument could be moot when Amazon steps into the prescription drug world. Like many industries from books to retail goods, Amazon is looking to disrupt another industry. That could be a game changer, dropping the price of prescriptions significantly, according to a business professor at University of Denver. 

"If you can skip some of those middle men and get them out of the deal, get some deals straight with the pharma's and with Amazon, then there's a cost savings there," said University of Denver finance professor Mac Clouse.

Health care industry analysts say Amazon will almost certainly get into the pill business, and within two years. 

"We've seen Amazon's experience with that in the book business, they reduce the price to the books where they drove out the brick and mortar competitors -- most of them," Clouse said. 

A CNBC report suggests Amazon could start filling in prescriptions as soon as Thanksgiving.