Wired News delivered to your inbox or hand-held device. Each company is backed by preeminent Silicon Valley venture capital firms, and both have lined up distribution partnerships with the top portals. For all the hoopla, it remains to be seen whether online drugstores will really take off. The large pharmaceutical companies have their own mail-order pharmacies, and it's not clear that they'll be willing to cut good distribution deals with online competition. Moreover, pressure from HMOs has pushed down profit margins for prescription drugs.
Real world drugstores like Walgreens make most of their profit in health and beauty aids.
Online drugstores may have a tough time taking a big piece of that market, too. Reuters contributed to this report. Send it . Use this version. E-mail this to a friend.