Amazon to acquire online pharmacy PillPack

28 Juin, 2018, 18:25 | Auteur: Yves Courtet
  • Amazon buys PillPack an online pharmacy that was rumored to be talking to Walmart		
		
	Ingrid Lunden

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Amazon announced Thursday that it is acquiring the online pharmacy PillPack, a sign of its long-rumored push into the pharmacy business.

The deal for PillPack, which organizes and delivers prescription medications, will put it in head-to-head competition against existing drug retailers and distributors such as CVS Health and Walgreens Boots Alliance. Walmart was reportedly interested in buying PillPack earlier his year, but Amazon seems to have won out in the end.

The online retail giant also announced a joint venture with JPMorgan Chase and Berkshire Hathaway aimed at lowering health costs for the companies' USA employees. "PillPack is meaningfully improving its customers' lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier". "Now there's a ton of activity and that's super exciting, it's a $400 billion market domestically, and I think there should be a number of different solutions for different types of customers".

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The acquisition follows months of rumors that Amazon was eyeing consumer healthcare services, particularly the pharmacy space. Just hours before Amazon announced it's buying PillPack, Walgreens beat analyst estimates on third-quarter revenue and earnings. Pharmacy benefit manager Express Scripts was also lower. Drugs are sorted by day and time, rather than medication. It has also developed pharmacy software that helps coordinate refills, makes sure the shipments are on time, and provides an online dashboard for patients. Customers can use the technology to contact pharmacists that can answer questions. The deal is expected to close in the second half of 2018, according to a statement from the companies.

The company's backers include Accel Partners, Atlas Venture, CRV, Founder Collective, Menlo Ventures, Sherpa Ventures and Techstars.

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