Medicine

Amazon buys prescription delivery startup PillPack

Amazon buys prescription delivery startup PillPack

The internet giant said on Thursday it would buy online pharmacy PillPack, a small but significant step into the USA healthcare sector.

PillPack, which is aimed at consumers who take multiple medications, presorts customers' prescriptions and helps manage refills and shipping.

Most immediately, the move represents a formidable challenge to pharmacy chains including Walgreens Boots Alliance Inc. and CVS Health Corp., the two largest drugstore chains in the U.S. Walgreens shares sank 8.5 percent at 10:49 a.m.in NY, while CVS shares shed 8.9 percent.

The deal is expected to close during the second half of 2018 and is subject to customary closing conditions. "We're excited to see what we can do together on behalf of customers over time". Apparently Walmart was also interested in buying PillPack and was outbid by Amazon.

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

The online retail giant also announced a joint venture with JPMorgan Chase and Berkshire Hathaway aimed at lowering health costs for the companies' USA employees.

Terms of the arrangement were not immediately disclosed.

More news: Rumour: The Eternals' Kronos to feature in Avengers 4

Shares in Walgreens Boots Alliance - which owns Boots in the United Kingdom, and CVS Health and Rite Aid were sent tumbling on Thursday afternoon, wiping $12.8bn (£9.7bn) off their combined market value.

The pharmaceutical supply chain, including pharmacy benefit managers and wholesalers, has been under pressure for the past one year as media reports of Amazon's push into the market spooked investors.

Acquiring PillPack marries the company's aspirations to move into consumer-centric healthcare verticals and its strong focus on complex logistics and delivery systems.

The move comes amid speculation that Amazon was planning to get into the pharmacy or drug-distribution business.

The selloff in drugstore stocks was reminiscent of the food-industry swoon that resulted in June 2017 when Amazon said it was buying Whole Foods Market Inc.

"When Amazon sneezes, everybody else catches a cold", said Joseph Feldman, an analyst with Telsey Advisory. PillPack is authorized to ship drugs in 49 states, according to Reuters.

The startup has raised north of $120 million in funding from big-name backers that include TechStars, Menlo Ventures, and Accel. The companies said the deal would have to clear regulatory hurdles before it is complete.


  • Priyanka Chopra to get engaged to young U.S.  star next month?

    Priyanka Chopra to get engaged to young U.S. star next month?

    The two were photographed by the media in Mumbai a while ago after they had stepped out for a dinner with Priyanka's family. They first sparked romance rumors at the 2017 MET Gala, where they walked the red carpet together in Ralph Lauren designs.
    Italy, Germany leaders clash as migration rows split EU

    Italy, Germany leaders clash as migration rows split EU

    The CSU has given her till early next month to come up with a compromise; most Germans presently believe she will fail to do so. Least of all supporters of the Chancellor was among the representatives of right-wing party "Alternative for Germany".
    Nintendo Switch cardboard edition can only be won in a contest

    Nintendo Switch cardboard edition can only be won in a contest

    Nintendo has released a free software update for Mario Kart 8 on Switch that allows you to drive bikes using a Labo controller. Announced earlier this year , these cardboard kits look poised to make the Switch a viable toy for creative children.
  • Supreme Court ruling shows travel ban isn't extreme

    Supreme Court ruling shows travel ban isn't extreme

    I have reason to suspect that the press isn't exactly thrilled over the Supreme Court upholding President Trump's travel ban. However, Tuesday's majority decision, authored by Chief Justice John Roberts , said "The text says nothing about religion".
    Of The 16 2018 FIFA World Cup Round Of 16 Spots Confirmed!

    Of The 16 2018 FIFA World Cup Round Of 16 Spots Confirmed!

    What is a little disturbing is the fact that England did not require a crystal ball to discover which team they might meet next. Manchester City's De Bruyne is one of three Belgium players on a yellow, along with Thomas Meunier and Jan Verthongen.
    Body found in beer cooler at Atlanta Braves’ ballpark hours before game

    Body found in beer cooler at Atlanta Braves’ ballpark hours before game

    The body of an employee was found in a freezer at SunTrust Park where the Atlanta Braves play, according to USA Today . The Braves declined comment, referring reporters to the statement from Cobb County police.
  • Melania Trump's New Message Is Black and White

    Melania Trump's New Message Is Black and White

    Customs and Border Protection, the agency that oversees the Border Patrol and customs officers. The first lady wore a controversial jacket on June 21 as she traveled to Texas.
    Belgium's Romelu Lukaku to recover from injury in time to face England

    Belgium's Romelu Lukaku to recover from injury in time to face England

    In the end, a moment of brilliance from a man who made his name in England separated the two teams. In the very last of the group stage games, the scenario was uncanny.
    Harley-Davidson planning to move some production out of USA

    Harley-Davidson planning to move some production out of USA

    The company said that it will not raise its prices because that would cause an immediate and long-lasting effect on sales in Europe.
  • Korea Knocks out Germany in 2-0 Upset

    Goalkeeper Cho Hyun-woo managed to keep Germany scoreless, stopping several threatening shots from German footballers. The Germany keeper bobbled the ball and needed to swipe the rebound away from the attackers after a spectacular dive.
    Kevin Kilbane posts Twitter message as Wayne Rooney leaves Everton

    Kevin Kilbane posts Twitter message as Wayne Rooney leaves Everton

    Last August saw Rooney step down from global duties, with 119 England caps and 53 goals to his name. The club is 2-4-6 this season and could no doubt benefit by adding a scorer such as Rooney.
    Two Love Island contestants will leave the villa tonight

    Two Love Island contestants will leave the villa tonight

    Rosie Williams, 27, was kicked out of the villa on Friday, making her the fourth dumped contestant of Love Island series four. Among the new ladies will be Jack's ex-girlfriend Ellie Jones and she's apparently made it clear she wants him back.