Amazon to buy PillPack in potentially disruptive drug retail push
28 June, 2018, 22:26 | Author: Cynthia Curry
PillPack is still a relatively small player in the pharmacy space, and it has a lot of obstacles to overcome to compete with established pharmacy giants, he said.
Amazon today unveiled plans to get into the pharmacy business with the acquisition of the online service PillPack. Bloomberg reported it to be $1 billion, citing a person it said was familiar with the matter.
Shareholders suffered jitters after Amazon closed a deal with PillPack, which sells prescriptions in every U.S. state except Hawaii.
"PillPack's visionary team has a combination of deep pharmacy experience and a focus on technology", said Jeff Wilke, Amazon CEO Worldwide Consumer.
PillPack supplies pre-sorted prescription drugs and other services for people who take multiple medications, a growing market as the US population ages and requires treatment for multiple complex, chronic conditions.
Terms of the arrangement were not immediately disclosed.
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"We know that we have to change the level of our services to the customers and we are working quite hard on that direction, but we are not anxious", Pessina said.
Some analysts played down the immediate threat Amazon poses.
"They've gotta go to the store three or four times a month because the pharmacy can't even fill them the same day", Parker said. "Pharmacy networks are controlled by managed care companies and pharmacy benefit managers with captive mail order capabilities". Walmart was reportedly interested in buying PillPack earlier his year, but Amazon seems to have won out in the end. PillPack already raised over $120 million in funding, according to Crunchbase.
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