Amazon has announced its decision acquire online pharmacy PillPack for just under $1bn. The online pharmacy is committed to driving exceptional customer services, particularly to those who take multiple daily prescriptions.
Delivering medications in pre-sorted dose packaging, coordinates refills and renewals, the company makes sure shipments are sent on time, and will open up further doors for Amazon to provide essential solutions, particularly to aging populations.
The news has been long feared by traditional pharmaceutical companies, and follows on from its work with the American Association of Retired Persons (AARP) and its partnership with JPMorgan and Berkshire Hathaway.
“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” says Jeff Wilke, Amazon CEO Worldwide Consumer. a
“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.”
The news is ramped up concerns across the industry and will provide rampant competition in lowering drug prices across the US, as well as enhance quality of care. Berkshire Hathaway’s CEO Warren Buffet has even described escalating healthcare costs as a ‘hungry tapeworm.’
“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 US who can benefit from a better pharmacy experience.”
PillPack holds pharmacy licenses in all 50 states, has URAC and VIPPS accreditation, and is an in-network pharmacy with most PBMs, including major Medicare Part D plans. It has also built a proprietary set of software systems and tools.
Upon hearing the news, shares in major drug companies, Walgreens Boots Alliance, CVS and others plunged by 8.2% and 7.9% respectively in pre-market trading.