Amazon agrees to buy PillPack, an online pharmacy

Amazon agrees to buy PillPack, an online pharmacy

Terms of the June 28 deal were not disclosed. It also handles refills and communicates directly with users' insurance and doctors.

An aging population means we'll see an increase in health concerns and chronic conditions like heart disease, neurodegenerative diseases, and cancer that can be costly to manage. "PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier", its cofounder and CEO TJ Parker said in a press release.

Shares of CVS and Walgreens declined on the news of Amazon's purchase.

TJ Parker, PillPack's co-founder and chief executive, said: "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".

PillPack was a 2014 finalist for Co.Design's Innovation By Design Awards.

'Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the USA who can benefit from a better pharmacy experience, ' Parker said in a statement. Shares of Cardinal Health, AmerisourceBergen, McKesson, and Express Scripts all dropped more than 3% on the news.


The deal could give Amazon another major foothold in New England, where it has made several major acquisitions and investments in recent years.

Amazon on Thursday announced it had signed an agreement to acquire PillPack, an online pharmacy.

Walgreens" chief executive, Stefano Pessina, said he was "not particularly worried" about the PillPack deal in an earnings conference call with analysts on Thursday, describing it only as a "declaration of intent' by Amazon.

Some analysts played down the immediate threat Amazon poses. Earlier this year, the technology giant announced its move into USA employee health care via a partnership with Berkshire Hathaway and JPMorgan, while reports have been surfacing for a while that it was looking to enter the lucrative pharmaceutical realm.

With Amazon's (amzn) firepower behind it, PillPack can upend how customers buy and receive their prescription medications.

Related Articles