Amazon buys online pharmacy PillPack
Amazon squashed any remaining doubt that they would get into the pharmacy business as they just acquired PillPak for $1B.
PillPack is a pharmacy designed to provide the best possible customer experience in the U.S. for people who take multiple daily prescriptions. PillPack delivers medications in pre-sorted dose packaging, coordinates refills and renewals, and makes sure shipments are sent on time.
We’re thrilled to share that @amazon has agreed to acquire PillPack. Together, we will continue making it easy for customers to save time, simplify their lives, and feel healthier. We’re excited for our future together. Read more: https://t.co/aMefiE4lWD pic.twitter.com/qOnglYnIC9— PillPack (@PillPack) June 28, 2018
“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” says Jeff Wilke, Amazon CEO Worldwide Consumer. “PillPack is meaningfully improving its customers’ lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier. We’re excited to see what we can do together on behalf of customers over time.”
“PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier,” said TJ Parker, co-founder and CEO of PillPack. “Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the U.S. who can benefit from a better pharmacy experience.”
With this deal, Amazon is making it clear that they intend to have a more direct role in the world of healthcare and pharmaceuticals in the coming years. With other players in the industry consolidating, the deal came at an opportune time as Wal-Mart was reportedly interested in PillPack prior to the Amazon acquisition.
The announcement sent a message to the rest of the industry too with major pharmacies like CVS, Rite Aid and Walgreens down over 10% on the news.
Walgreens Boots CEO, asked moments ago about Amazon's PillPack deal, says "we don't see any reason to be worried, we are not complacent..."$WBA is currently on pace for its worst day since Oct. 28, 2015. pic.twitter.com/NHlVbOjks8— CNBC Now (@CNBCnow) June 28, 2018
Maybe so, or maybe it is a way to ease investor concerns. Either way, with this deal, Amazon has announced that they are serious about entering the healthcare market.