Amazon acquiring online pharmacy PillPack, sending drug retailer shares down

Amazon acquiring online pharmacy PillPack, sending drug retailer shares down

"We're excited to see what we can do together on behalf of customers over time". It offers medications in presorted dose packaging, coordinates refills, and handles shipments.

With its far-reaching and widely popular online site, Amazon moves closer to establishing beachheads in medicine chests across the US and using that muscle to alter the traditional playbook for prescription drug distribution.

TJ Parker, PillPack's co-founder and chief executive, said: "Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the USA who can benefit from a better pharmacy experience". "PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier", its cofounder and CEO TJ Parker said in a press release.

Financial terms of the deal were not disclosed, but sources cited by TechCrunch peg the price at just under $1 billion.

Shares of CVS and Walgreens declined on the news of Amazon's purchase. "Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the USA who can benefit from a better pharmacy experience". Once the deal closes, Amazon could potentially start selling prescription drugs directly through its site, delivering them via mail and impacting retail pharmacies.

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PillPack, which launched in 2014, is available in every USA state except Hawaii. Pharmacy benefit manager Express Scripts was also lower.

"Not only has Amazon finally made a solid move into pharmacy, it has done so via an innovative supplier which helps patients manage and organize their prescription drugs", Saunders said in a research note.

Shares of drug wholesalers McKesson Corp, Cardinal Health and AmerisourceBergen also fell sharply.

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.

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