Update: Amazon reportedly paid just under $1 billion for PillPack, according to Bloomberg.
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Amazon has finally revealed its long-anticipated next step as it wades into the drug-distribution business.
Following reports in April that Amazon's business unit had abandoned plans to begin selling pharmaceuticals, it appears the company has once again decided that it'd just be easier to buy an existing business rather than build one from scratch. To wit, Amazon has announced plans to buy PillPack, an online pharmacy that offers pre-sorted doses of medications, as well as home delivery, Bloomberg reports.
The terms of the deal were not disclosed.
Presumably on the belief that Amazon will negotiate lower prices, health-care supply chain companies (like CVS, Walgreens, and RiteAid) are all down hard in the pre-market and distributors (like McKesson and Cardinal Health) are also suffering:
Is it too early to start talking about kicking Walgreens out of the Dow?
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Read Amazon's full statement on the acquisition below:
SEATTLE & BOSTON -- June 28, 2018 Amazon (NASDAQ:AMZN) and PillPack today announced that they have entered into a definitive merger agreement under which Amazon will acquire PillPack. 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.
“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.”
Completion of this transaction is subject to regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2018.