Amazon Inc. (NASDAQ:AMZN) is reportedly in talks with generic drugmakers about entering the pharmaceuticals market.
The e-commerce giant has held conversations with Mylan (NASDAQ:MYL) and Sandoz, a unit of Novartis, though it is clear whether Amazon plans to enter as a drug wholesaler or retailer, CNBC reported.
Leerink said in a note to investors on Thursday that President of Sandoz US, Peter Goldschmidt, had "met and discussed with Amazon its plans for getting into the U.S. healthcare market" at a recent biopharma event.
A source told CNBC the talks are centred on Amazon taking a role in drug purchasing and general manufacturers are keen to establish a relationship with the company next year.
Such a move could threaten leading distributors, including McKesson, AmerisourceBergen and Cardinal Health.
However, some in the industry have raised doubts on the possibility of Amazon dipping its toes into the pharmacy space.
Walgreens Boots Alliance CEO Stefano Pessina said he doesn't see it happening because of the regulatory challenges.
"I believe that they will not come in an industry so complicated as our industry," he said during the Forbes Healthcare Summit on Wednesday."I believe in the end they will use their technology in a different way."
Novartis, Mylan and Amazon have declined to comment.