Amazon has tapped 14-year company veteran Nader Kabbani to run its brand-new pharmacy business, including the team which came in through last year’s acquisition of PillPack, SouthIndianNews.com has learned.
Kabbani, who helped build Amazon’s Kindle self-publishing platform in addition to has served as vice president inside the logistics in addition to Flex businesses, is usually today “vice president of consumables, special projects,” according to an internal document which was viewed by SouthIndianNews.com.
The entire team at PillPack, which Amazon bought for more than $800 million in June 2018, reports directly to Kabbani, the document says. which includes CEO TJ Parker, product chief Elliot Cohen in addition to technology head Alan Gao.
Amazon declined to comment.
The pharmacy business has huge potential for Amazon. inside the U.S., more than 4 billion prescriptions are ordered annually, in addition to spending is usually likely to top $600 billion inside the next few years, much of which covered by insurers in addition to Medicare in addition to Medicaid. With PillPack, Amazon is usually poised to take a slice of the growing home delivery market, though the idea could also potentially incorporate retail pharmacy offerings at Whole Foods locations, after buying the upscale grocery chain for more than $13 billion in 2017.
Kabbani’s appointment shows Amazon is usually putting one of its most ambitious brand-new projects inside the hands of a trusted company executive with plenty of experience in supply chain in addition to logistics, however no background in pharmaceuticals or health care. He was in charge of Amazon Flex, the company’s program which hires individuals to make deliveries on a flexible schedule, as well as different aspects of Amazon’s last-mile delivery strategy. His LinkedIn page has him listed as the vice president of Flex since March 2017.
The pharmacy in addition to distribution industries have been watching Amazon’s every move.
Following the announced acquisition of PillPack, shares of drug distributors in addition to pharmacies plummeted, with Walgreens Boots Alliance plunging 9.9 percent in addition to McKesson dropping 6.1 percent. CVS Health, Cardinal Health, AmerisourceBergen in addition to Rite Aid also fell on concern which Amazon might eat into their markets. Pharmacy is usually a notoriously challenging sector, given the dominance of brick-in addition to-mortar incumbents in addition to the middlemen which negotiate drug prices in addition to manage their distribution.