By Manas Mishra
(Reuters) - Shares of U.S. drug suppliers rose on Monday after a report that Amazon.com Inc had dropped plans to sell drugs to hospitals, in a boost to a pharmaceutical supply chain rattled by the looming threat of competition from the online retailer.
CNBC, which reported Amazon's plans on Monday, said the change comes partly because the e-commerce company had not been able to convince big hospitals to change their traditional purchasing process.
The company, through its Amazon Business unit, will instead focus on selling less sensitive medical supplies to hospitals and smaller clinics, CNBC said, citing people familiar with the matter.
Amazon told Reuters it does not comment on rumours or speculation.
"After months of hype and fear it appears now that Amazon's entry into the drug distribution space has been indefinitely delayed," said Evercore ISI analyst Ross Muken. Amazon is likely to remain focused on selling dental and medical products, he added.
The presence of established drug suppliers, along with difficulties in distributing highly regulated treatments, likely deterred the technology giant from entering the industry, analysts said.
(Reporting by Manas Mishra in Bengaluru; Editing by Sai Sachin Ravikumar)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)