Wednesday, 18 July, 2018

Amazon agrees to buy PillPack, an online pharmacy

Above PillPack Above PillPack
Melissa Porter | 28 June, 2018, 20:37

For years, pharmacy operators have held their breath as rumors circulated about Amazon's interest in capturing a piece of the 4 billion prescriptions sold to Americans each year.

Fears that the tech giant was primed to shake up the pharmaceutical.

PillPack is an online pharmacy which operates in all 50 USA states and offers pre-sorted dose packaging and home delivery.

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Founded out of Boston in 2013, PillPack invites customers to sign up online, and the company then dispatches "over-the-counter" and prescription medications in individual packs organized by date and time.

Terms of the deal weren't disclosed.

"We are not particularly anxious", Pessina said, but added that the company was not complacent either.

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

"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.

Shares of CVS and Walgreens declined on the news of Amazon's purchase. PillPack already raised over $120 million in funding, according to Crunchbase. It also handles refills and communicates directly with users' insurance and doctors.

Here's how PillPack works: Users receive a monthly roll of pre-sorted medications with labels that include photos and instructions.

The firm says it is 'designed to provide the best possible customer experience in the US for people who take multiple daily prescriptions'. The specifics of what the company will do, though, are still unknown.

"Manchester is proud to be home to innovative companies like PillPack that are not only driving our city's economic growth, but improving people's lives".

The deal comes as the health care industry is undergoing a series of convulsions in response to rising costs and pressure on drug makers, pharmacy benefit managers, and insurers.

The damage also spread through the pharmacy supply chain, with drug wholesalers seeing deep losses. The companies patched things up a few weeks later.

The move sent shares of drug distributors and retailers lower.

That's bad news for Walgreens. The PillPack deal is expected to close during the second half of 2018.

The company said earlier this year it will bring about 2,000 new employees to a new Seaport building, on top of an additional 900 in a new Fort Point office.