Amazon Registers ‘Amazon Pharmacy’ Trademark in UK as It Eyes Launch

Date: March 16, 2021 | Country: UNITED KINGDOM | Region: EUROPE | Type: Policy | Keywords: #amazon #bureaucracy #disruptive #logistics #pharmacy

PRICENTRIC BRIEF:

  • Amazon has registered the trademark “Amazon Pharmacy” with the UK’s Intellectual Property Office, signaling concrete plans to move in on the UK’s pharmacy industry
  • Now that the trademark has been confirmed by the Office, the path has been carved for Amazon to look at dispensing pharmaceutical prescriptions, as well as potentially moving into the medical and dental instruments and surgical markets
  • The key difference between the UK and the U.S. for Amazon’s market entry is that the UK regulates its drug prices, so Amazon has one less selling point, having to rely on its promises of convenience and speed – However, pharmacies in the UK are notorious for having unnecessary amounts of bureaucracy, something that Amazon’s capabilities would potentially be able to outperform with its tried-and-tested logistics

 

THE DETAILS

LONDON, United Kingdom – Amazon has registered the trademark “Amazon Pharmacy” with the UK’s Intellectual Property Office, signaling concrete plans to move in on the UK’s pharmacy industry.

Now that the trademark has been confirmed by the Office, the path has been carved for Amazon to look at dispensing pharmaceutical prescriptions, as well as potentially moving into the medical and dental instruments and surgical markets.

Amazon launched its Amazon Pharmacy service in the U.S. in November 2020, disrupting the industry with its well-oiled supply chains and logistics operations.

The key difference between the UK and the U.S. for Amazon’s market entry is that the UK regulates its drug prices, so Amazon has one less selling point, having to rely on its promises of convenience and speed.

Pharmacies in the UK are notorious for having unnecessary amounts of bureaucracy, something that Amazon’s capabilities would potentially be able to outperform with its tried-and-tested logistics.

The cost of a single prescription in the UK is currently £9.15 but is set to rise to £9.35 from April 1, 2021, due to an amendment to the National Health Service (Charges for Drugs and Appliances) Regulations.

In addition to the single prescription charge, three-month prescription prepayment certificates will increase from £29.65 to £30.25 and 12-month prescription prepayment certificates will rise from £105.90 to £108, according to the Pharmaceutical Services Negotiating Committee (PSNC).

Amazon initially acquired digital pharmacy PillPack in 2018 for $750m in a move that concerned pharmacy benefit managers (PBMs), and has since then been a key player in the U.S.’ online pharmacy landscape.

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