Amazon just put the entire pharmaceutical industry on notice

Above PillPack

The company said on Thursday morning it was buying online pharmacy PillPack in a deal that will instantly give Amazon a platform through which to sell pharmaceuticals.

In a statement, PillPack CEO and Co-Founder TJ Parker said the company, together with Amazon, plans to "continue working with partners across the healthcare industry to help people throughout the United States who can benefit from a better pharmacy experience".

PillPack, which is aimed at consumers who take multiple medications, presorts customers' prescriptions and helps manage refills and shipping.

Such a move had always been expected by investors in established health care companies, who have long feared the world's biggest online retailer's potential to disrupt the complex and opaque US drugs business.

But today's deal comes with few details and no promise that Amazon will be able to scale up PillPack's business, which earned about $100 million in 2017.

Shares of both CVS and Express Scripts were down in premarket trading in NY. CVS reported prescription sales of US$59.5 billion past year, and Walgreens sold US$57.8 billion worth of drugs in its fiscal 2017. The transaction is expected to close in the second half of 2018, according to a statement from the companies. PillPack streamlines delivery of prescription and over-the-counter medications by pre-sorting them into handy dose packets sent directly to customers' doors nationwide in monthly supplies. The service is aimed at people taking more than one prescription drug every day.

"When Amazon sneezes, everybody else catches a cold", said Joseph Feldman, an analyst with Telsey Advisory. Acquiring PillPack's networks helps Amazon surmount those hurdles.

The purchase follows the announcement in January that Amazon, Berkshire Hathaway Inc and JPMorgan Chase & Co were forming a joint venture to tackle rising US health care costs. It's raised more than $118 million from brand-name investors including Accel, Sherpa Capital and NY rapper Nas's Queensbridge Venture Partners.

In April, CNBC reported that Walmart was looking to buy PillPack for less than $1 billion.

Pessina added that physical pharmacies "will continue to be very, very important in the future".

Related News:



Most liked

Germany crash out, Brazil through
The VAR system showed again that the second goal was also effective and sealed the victory for South Korea 2-0. But we have young players who are talented and have the potential to go forward.

Suarez inspires Uruguay to win Group A over Russian Federation
More recently, the team finished fourth in South Africa in 2010 and made the round of 16 in Brazil four years ago. Egypt goalkeeper Essam El Hadary, who is 45, took the field for his team's final group match to set the record.

Uruguay 2-0 vs Russia; Saudi Arabia nets equaliser
Uruguay sealed top spot in World Cup Group A with a 3-0 win over 10-man Russian Federation at the Samara Arena this afternoon. Mohamed Salah put Egypt ahead after breaking through on to a long ball forward and lobbing the goalkeeper .

NBA Draft 2018: ACC leads the way with 6 first-round picks
Following his selection at 8th overall by Cleveland, Sexton was coaxed by the interviewer to make a pitch for LeBron to stay. Starting with the Arison family and Pat Riley. "They booed (Kristaps) Porzingis (on draft night) and look where he is now".

Mexico dominates in match against South Korea, wins 2-1
Son Heung-min scored a consolation goal for South Korea in injury time, sending a powerful shot past goalkeeper Guillermo Ochoa . The Mexicans were awarded the penalty after Jang Hyun-soo handled the ball while trying to stop a cross from Andres Guardado.

ABC picks up Roseanne spinoff The Conners with John Goodman & more
Journalist based in Charlotte, North Carolina, whose work has appeared in The Charlotte Observer, Creative Loafing, and more. The stars of the forthcoming spinoff have released a statement regarding ABC's decision to green light the series.

Aguero leads the line again for Argentina v Croatia
With a player of Messi's talent, it is a waste to confine him to one part of the pitch. He was on the edge of the game, but still created some openings with clever passes.

Cavs Reveal Latest Plans Regarding Their 1st-Round Draft Pick
He does not want James, 33, to make the same mistake. "People have been saying that for the past four years". Whether that would be through the draft on Thursday, my source tells me it is "likely but not definite".

England have a new prince - and his name is Harry
England dominated the entire match with their attacking display yet for nearly the entire match, they had just one goal to show. England started like a house on fire as they pinned the Tunisians to their half with slick passing from the back.

England vs Australia: England clinch their biggest ODI win at Nottingham
Bairstow was dropped on 30 by Marcus Stoinis and that proved extremely costly as he began to pepper the boundary. The only disappointment was that they failed to go beyond the 500-run barrier after some late wickets fell.

Samsung announces the 2-in-1 Chromebook Plus V2
The design is sleek and comfortable to handle with rounded edges and a curved-cap keyboard built to withstand spills up to 60cc. There's no word on whether Samsung is planning to bring the Chromebook Plus V2 to other markets, like the United Kingdom.

What went wrong for Argentina vs Iceland?
Substitute Cristian Pavon almost scored the victor for Argentina four minutes from time but his curling effort was saved by Halldorsson.

Phil Mickelson takes 2-shot penalty for hitting a moving golf ball!
"I would gladly take the two shots over continuing that display." he said when asked about it by Curtis Strange of Fox. There's such small margins [for error]. "It's something you might see at your club with your mates".

Report a 'total disaster' for Comey and the Federal Bureau of Investigation , says Trump
And what's more , apparently he did so while the FBI was investigating Clinton for nearly the very same thing . That investigation, now led by Mueller, is also looking into whether Trump obstructed justice.

United Nations ready to support process of North Korea’s denuclearization - Secretary General
Trump's own chest-thumping tweet seemed reminiscent of the "Mission Accomplished" banner flown behind President George W. Pompeo, the former Central Intelligence Agency director, then plans to fly to Beijing to update the Chinese government.