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Samsung, Amazon — Everyone Is Getting Into Pharmaceuticals

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Samsung, Amazon — Everyone Is Getting Into Pharmaceuticals

From the looks of it, pharmacy is the place to be.

The global sector has hundreds of players, private and public, and household brands like Pfizer Inc. (NYSE: PFE), Merck & Co., Inc. (NYSE: MRK) and Eli Lilly and Co (NYSE: LLY) have long dominated the crowded field.

Even so, and despite the slow and tedious work of developing drugs and securing regulatory approval, new players continue to emerge. In fact, some are pivoting from their established niches and fundamental focuses to partake in the industry, which is expected to become a $1.12 trillion market in 2022.

Samsung Electronics (OTC: SSNLF) rolled out its pharmaceutical line Monday with a replicate of Johnson & Johnson (NYSE: JNJ)’s rheumatoid arthritis drug, Remicade. The South Korean electronics manufacturer will distribute the treatment at a 35 percent discount.

Samsung Bioepsis Co. will continue to produce biosimilars to compete with name-brand drugs.

Meanwhile, Amazon.com, Inc. (NASDAQ: AMZN) is taking on the role of pharmacy benefit manager, or PBM, and is primarily poised to disrupt the generic drug market.

The firm expanded its empire in May with the hiring of a new general manager charged with recruiting pharmaceutical experts.

The anticipated competition could also catalyze a lowering of drug pricing.

“We believe its [Amazon’s] eventual rollout could provide further downward pressure on prescription drug pricing, as Amazon’s entry may lead to increased competition among distributors/pharmacies,” Wells Fargo analyst David Maris said in a June note.

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Posted-In: BiosimilarsBiotech News Health Care Tech Media Trading Ideas General Best of Benzinga

 

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