UPS has taken a step toward further diversifying its business by obtaining a pharmacy license in Georgia that will allow it to repackage and resell drugs and other pharmaceuticals.
The company told CNBC it needed to acquire the license in Georgia to comply with federal laws because it already ships pharmaceuticals. One expert, however, said UPS is likely thinking of how it can position itself in the market down the road, which could include repackaging and relabeling drugs under its own brand.
"As a repackager, [UPS is] not just taking the product as it is from the manufacturer. It's being able to [take] the product and individualize it and split it up into different units," drug supply chain and compliance attorney Nicodemo Fiorentino told CNBC.
"Becoming an FDA-registered relabeler means UPS now has the ability to take products from a manufacturer, relabel them, and sell under their own label or brand."
UPS and Fedex dominate the shipping industry, but Amazon is trying to break into the market to keep both its e-commerce and shipping efforts in house.
A report last month claimed Amazon may begin selling prescription drugs in the future, which could create a rift in the pharmacy industry.
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