Are CVS And Walgreens Unfairly Fighting Back Against Amazon's PillPack?

E-commerce giant Amazon.com, Inc. AMZN bought the online pharmacy company PillPack last year, and legacy pharmacy retailers may be unfairly fighting back, CNBC reported.

PillPack offers a mail delivery service and offers consumers an alternative to traditional companies like CVS Health Corp CVS and Walgreens Boots Alliance Inc WBA.

CVS and Walgreens are rejecting many customer requests to move their profiles over to Amazon's business, according to CNBC.

PillPack doesn't have the necessary consent from patients to switch, according to the pharmacy chains. 

A Fight Over Valuable Customers

In some instances, pharmacists hang up on PillPack or toss a transfer request directly into the trash, CNBC said. 

In a response to CNBC, PillPack spokeswoman Jacquelyn Miller said it is "unacceptable to make unsubstantiated allegations" about its practices while making it more difficult for customers to switch.

On its end, CVS said it doesn't indiscriminately reject transfer requests; rather the company reaches out to customers to confirm their validity, according to CNBC. 

Amazon is keeping note of each case a transfer request is refused, according to CNBC. This is notable for both sides, as one single client can account for thousands of dollars in revenue through copays and insurance coverage.

It is possible patients with memory issues don't recall signing up for PillPack, or become embarrassed about acknowledging the switch with their pharmacist.

Amazon stock was down 0.27% at $1,783.03 at the time of publication Wednesday, while CVS was trading higher by 5.81% at $57.22. Walgreens Boots Alliance stock was down 0.54% at $51.17. 

Related Links:

CNBC: Retail Pharmacies More Worried About Amazon Than They Admit

Amazon's PillPack Acquisition: What It Means For The Tech Giant And Everybody Else

Photo by Dustin Blitchok.