Brasília – Mercado Livre is making a strategic move into Brazil’s drugstore sector by acquiring a pharmacy in São Paulo’s South Zone. The transaction, executed through a K2I Intermediação unit under the logistics company Kangu, finalizes the acquisition of Target — the trade name for Cuidamos Farma Ltda — from healthtech Memed.

This maneuver triggered a sharp market response. Shares of RD Saúde (Raia Drogasil) dropped nearly 7%, while Pague Menos and Panvel saw declines of 5.8% and 3.8%, respectively. Analysts suggest the acquisition could serve as a pilot for Mercado Livre’s broader entry into the pharmaceutical retail ecosystem, using owned physical assets to navigate regulatory constraints on online medicine sales under current regulations.

Approval by Cade (Brazil’s Antitrust Authority) is still pending. Meanwhile, industry experts caution that despite the high potential, Mercado Livre must address regulatory restrictions, quality control, and logistical standards to effectively compete with traditional drugstore chains.

Source: CNN Brasil

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