Amazon Buys PillPack for $1 Billion

Amazon began two decades ago as an online bookseller but has mushroomed into one of the world's largest companies whose assets also include groceries and a hardware division

Amazon Buys PillPack for $1 Billion

Last year, a PillPack representative said the company is the "only independent pharmacy that now delivers medications nationwide". The five-year-old company manages multiple prescriptions for customers by pre-sorting, packaging, and delivering drugs with a round-the-clock staff that can be contacted online or by phone. PillPack is meaningfully improving its customers' lives, and we want to help [PillPack] continue making it easy for people to save time, simplify their lives, and feel healthier.

Halper isn't anxious about Amazon's entrance into the prescription-drug business as pharmacy networks are controlled by managed-care companies and pharmacy benefit managers.

Walgreens Boots Alliance Inc's chief executive officer said on Thursday he was not anxious about Amazon.Com Inc's push into the USA healthcare sector, but investors were rattled by the threat the online giant could pose to the sector.

Rite Aid shares also fell, as did the stocks of big drug distributors Cardinal Health and AmerisourceBergen.

Walmart was in talks to acquire PillPack earlier this year for less than $1 billion, CNBC reports, and the company was last valued at $360 million. Customers can also email, text, or call their PillPack pharmacist any time to ask questions or clarify instructions.

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"This now means that the retail side of the business is largely incapable of driving footfall into stores which could help support the prescription and pharmacy side of the business".

PillPack has mail-order pharmacy licenses in all 50 states, which could allow Amazon to expand quickly.

Amazon has officially charged into the health sector. Amazon's deal creates more uncertainty about the future of the current system for delivering health care, Edward Jones analyst John Boylan said in a research note.

The deal's potential to disrupt major players across the drug supply chain nationwide prompted a sell-off in shares of possible rivals, while sending Amazon shares up 2.5 percent. Terms of the deal were not disclosed, but Amazon referred to the deal as a "definitive merger agreement". The companies expect it to finalize the transaction in the second half of 2018. In 2016, the pharmacy benefits company Express Scripts Holding Co. threatened to drop PillPack from its list of approved vendors because of its focus on delivery over storefront retail.

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