Amazon Has Shelved its Plans to Sell Pharmaceuticals to Hospitals

Shares of drug stores and drug distributors were climbing higher on Monday after a CNBC report revealed that Amazon has shelved its plan to sell pharmaceuticals to hospitals and doctors.

According to the CNBC report, Amazon Business has shelved the plan and people familiar with the situation have said that the company cancelled the plan after considering it last year.

Shares of CVS Health, Rite Aid, Walgreens, and AmerisourceBergen saw their shares climb on the news.

The people also told CNBC that Amazon’s decision to scrap the plan was also due to the company’s inability to persuade hospitals to change their current purchasing practices and its need to build a more sophisticated logistics network.

Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.