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Amazon Eyeing Diagnostic Space to Gather Steam in Healthcare

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Amazon’s (AMZN - Free Report) continued focus on healthcare industry is likely to transform the traditional methods in this space into smarter, efficient and time saving ones.

Reportedly, the e-commerce giant has been eyeing the consumer health diagnostic market for quite some time now in order to develop products that will enable people to take vital medical tests at home.

This kind of products will accelerate the healthcare delivery time which will be of a great help to patients and their families. These initiatives prove that Amazon is well poised to cause massive disruption in the multi-trillion healthcare space with its innovative technologies, strategic partnerships and acquisitions.

Initiatives in Diagnostic Space

Per CNBC, Amazon’s Grand Challenge healthcare team, which is involved in several projects related to medical records, last mile delivery and most importantly cancer research, was actively working on a secretive diagnostic project during the summer of this year.

Although there is no confirmation on the status of the project, it is still projected to generate $250 million in sales, in turn driving the company’s top-line growth.

Amazon also considered buying Confer Health which manufactures hardware for at-home tests this year but dropped the plan after announcing the acquisition of PillPack.

Further, the company recently joined forces with Omron Healthcare which develops blood pressure monitors. This partnership enables integration of Alexa with these monitors which in turn will enable people to check their latest blood pressure reading, calculate average readings and compare levels throughout different times of the day with the aid of voice commands.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote

Strengthening Competition

Notably, Amazon’s strong point-of-care diagnostic initiatives are expected to aid it in penetrating the global healthcare supply chain management market which as per a report from Research and Markets, is expected to witness a CAGR of 8% between 2018 and 2023.

Moreover, the company’s eye on home health-testing space is likely to put competitive pressure on testing and medical diagnostic companies like Laboratory Corporation of America Holdings (LH - Free Report) and Quest Diagnostics (DGX - Free Report) .

Further, Amazon is likely to intensify the competition for Alphabet’s (GOOGL - Free Report) Google which is also leaving no stone unturned to bolster footprint in the healthcare quality management space on the back of its innovative techniques and expanding global presence.

Recently, the search giant rolled out an artificial intelligence project in Thailand for the detection of diabetic eye disease causing permanent blindness.

Nevertheless, Amazon’s aggressive and growing healthcare initiatives are expected to provide it a competitive edge over Google.

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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