Pharmacy shares drop on news Amazon is buying online prescription company PillPack

Pharmacy shares drop on news Amazon is buying online prescription company PillPack

Pharmacy shares drop on news Amazon is buying online prescription company PillPack

The internet giant said on Thursday it would buy online pharmacy PillPack, a small but significant step into the USA healthcare sector.

He added this "is only the first play" in an increasingly aggressive strategy by Amazon for a much more significant role in pharmacy. Terms of the deal were not disclosed, but Amazon referred to the deal as a "definitive merger agreement".

Rapper Nasir "Nas" Jones' venture capital fund scored another victory on Thursday with Amazon's announcement that it had acquired online pharmacy PillPack for a reported $1 billion.

"We want to help them continue making it easy for people to save time, simplify their lives, and feel healthier". Drug wholesalers Mckesson Corp., Cardinal Health and AmerisourceBergen were also down.

PillPack stands out from the crowd in both its ability to deliver to your door as well its organized and regimented packaging, often chronic medications will come in daily or weekly doses all separated out to eliminate confusion. In January, Amazon, Berkshire Hathaway and JPMorgan Chase announced plans to create an independent company that's "free from profit-making incentive" and geared toward providing innovative healthcare solutions to their USA employees. Our subscribers rely on FiercePharma as their must-read source for the latest news, analysis and data on drugs and the companies that make them. 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. "We're excited to see what we can do together on behalf of customers over time", said Wilke. The company raised more than $118 million from brand-name investors including Accel, Sherpa Capital and NY rapper Nas's Queensbridge Venture Partners.

The acquisition is expected to close in the second half of this year. PillPack previously raised $118 million from venture capitalists and is said to have surpassed $100 million in sales for 2017.

Based on Thursday's news, Amazon appears to have the leg up, at least for now.

On an earnings conference call, Walgreens CEO Stefano Pessina addressed the deal by saying "it is a declaration of intent from Amazon", according to Bloomberg.

The companies said the deal would have to clear regulatory hurdles before it is complete.

Related news