Amazon to acquire online pharmacy startup PillPack
Entering the health care market overnight 💊
Posted on June 28, 2018 3:35 PM.
CNBCAngelica LaVito and Lauren Hirsch
Amazon is acquiring online pharmacy PillPack in a deal that could shake up the drugstore industry.
PillPack organizes pills into easy packages, and delivers them to customers, providing a simpler way to stay on top of taking medicine.
BloombergRobert Langreth and Zachary Tracer
The move represents a formidable threat to pharmacy chains including Walgreens Boots Alliance Inc., which earlier Wednesday reported tepid U.S. same-store sales, and rival CVS Health Corp. Walgreens shares dropped roughly 10 percent, while CVS shed nearly 9 percent in premarket trading in New York.
The terms of the deal were not disclosed, and it is expected to close in the second half of this year.
Venture BeatPaul Sawyers
The startup has raised north of $120 million in funding from big-name backers that include TechStars, Menlo Ventures, and Accel. Walmart was reportedly interested in buying PillPack earlier his year, but Amazon seems to have won out in the end.
Earlier this year, Amazon announced they were moving into health care, rumored to be buying an online pharmacy. Instead, Amazon partnered with Berkshire Hathaway and JPMorgan to create an affordable care option. Now, with the acquisition of PillPack, Amazon can move even quicker to expand into the market.
“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.”
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