UPDATE 1-Drug suppliers' shares rise as looming Amazon threat appears to ease

(Adds details from report, background)

April 16 (Reuters) - Shares of U.S. drugstore chains and drug distributors rose on Monday after CNBC reported https://www.cnbc.com/2018/04/16/amazon-business-not-selling-drugs-but-other-amaz o n - g r o u p s - m i g h t . h t m l that Amazon.com Inc had shelved its plans to sell and distribute pharmaceutical products to hospitals.

Stocks of drug distributors McKesson, Cardinal Health and AmerisourceBergen, as well as those of drug retailers CVS Health and Walgreens Boots Alliance, all jumped after the report.

The change in Amazon's plans comes partly because the online retailer has not been able to convince big hospitals to change their traditional purchasing process, CNBC said, citing sources familiar with the matter.

Amazon did not immediately respond to Reuters' request for comment.

The company, through its Amazon Business unit, will instead focus on selling less sensitive medical supplies to hospitals and smaller clinics, according to CNBC.

The pharmaceutical supply chain, including distributors and retailers, has been rattled in the past year over speculation that Amazon will make a big move into the industry. (Reporting by Manas Mishra in Bengaluru; Editing by Sai Sachin Ravikumar)