Amazon‘s (NSDQ:AMZN) Business division has dropped plans to sell and distribute pharmaceutical products to hospitals, according to a new report from CNBC.
The shift comes due to the online mega-retailer being unable to convince large hospital groups to change their purchasing process and break existing deals and relationships with distributors, according to the report.
The transition to operating as a pharmaceutical supplier would also require Amazon to develop advanced logistics networks and the ability to handle temperature-sensitive pharmaceuticals, according to the CNBC report, which references individuals familiar with the deal.
The online retailer will reportedly continue with its plans to deliver basic medical supplies to hospitals and smaller clinics through its Amazon Business division. In February, the Wall Street Journal reported that Amazon was looking to up its stake in its hospital supplies offerings, providing products to approximately 150 outpatient facilities and hospitals.
Amazon may not be completely out of the pharmaceutical business, with multiple sources speculating that the company could be considering a direct-to-consumer prescription drug biz, according to the report.
In March, Amazon showed it is still invested in increasing its stake in the healthcare industry by picking up former FDA chief health informatics officer Taha Kass-Hout.