Amazon in talks to partner with Apollo Hospitals to enter pharmacy biz

Ecommerce giant Amazon is currently in discussions with Apollo Hospitals for collaborating in its pharmacy business.

As per reliable reports, Amazon and Apollo HealthCo are looking forward to joining hands to augment the omnichannel focus of the pharmacy business. Apparently, the collaboration will offer Amazon the firepower to compete with big giant Reliance and Tata, who have already entered the fray with acquisitions.

According to sources, Apollo Hospitals is currently in discussions with many private equity capitals, focusing on tech for a minority share sale in the pharmacy business.

Investors are highly keen to know if Amazon would partner with Apollo to improve its primarily offline model with its online reach and make it completely omnichannel.

However, the official sources state that it is yet to be disclosed if Amazon will share a stake in Apollo HealthCo upfront or not, but it may discover the option.

Apollo hospital plans to sell around a 20% stake of their pharmacy subsidiary and seeks to raise approximately $500 million. As per recent statistics, the company's valuation lacks a little behind $3 billion.

Commenting on the tentative move, an Amazon spokesperson mentioned that they would like to make it very clear that as a policy, the amazon employees or members do not comment on media speculations and rumours. As part of their overall business strategy, they will continue evaluating multiple options and opportunities to maximize their shareholders' value.

Important to note that the online pharmacy is becoming a ferociously competitive space as recently NetMeds was acquired by Reliance, and 1mg was brought by Tata Digital.

The partnership of Amazon with a large offline player will bridge the space even more than ever.

Earlier in 2021, Apollo Hospitals Enterprises announced the merger of its offline and online pharmacies and telemedicine businesses via slump sale into complete subsidiary Apollo HealthCo.

Source Credit - https://www.moneycontrol.com/news/business/companies/amazon-in-talks-with-apollo-hospitals-for-partnership-in-pharmacy-business-sources-7763591.html