Amazon steps into the OTC health product market with its Basic Care line

In a move that will pose a major challenge to pharmacy retail chains, e-commerce giant Amazon has launched its exclusive Basic Care line of over-the-counter health products.

Introduced quietly in the United States late last summer, the line features 60 low-priced products including ibuprofen and hair regrowth treatments.

The Basic Care line is made by American firm Perrigo, one of the largest producers of generic and private label health products.

Traditional pharmacy retail chains are preparing for the price war that will inevitably be unleashed by Amazon’s move and are attempting to shore up their positions through M&As.

Last week the Albertson supermarket chain acquired 4,350 Rite Aid pharmacies, creating a business giant with 34,900 stores and 4,350 pharmacies spread across 38 US states.

A further 2,000 Rite Aid pharmacies were acquired last year by Walgreens Boots Alliance.

The generic OTC health product industry generated sales of US $8.4 billion in the United States last year, 31% up on 2016.