Amazon just bought a tiny startup most people have never heard of and it's scaring the heck out of pharmacy shareholders
Amazon announced on Thursday that it has signed an agreement to acquire PillPack, an online pharmacy.
PillPack's business is built around customers who take multiple daily prescriptions. It offers medications in pre-sorted dose packaging, coordinates refills, and handles shipments.
The deal - for which terms were not immediately disclosed - marks Amazon's latest push into the healthcare industry. In January, the company announced a collaboration with JPMorgan and Berkshire Hathaway to reduce healthcare costs for US workers.
"PillPack's visionary team has a combination of deep pharmacy experience and a focus on technology," Jeff Wilke, Amazon's CEO of worldwide consumer said in a release. "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."
Pharmacy stocks in the US market dropped on the deal announcement, with CVS (-8.1%), Rite Aid (-3.1%), and Walgreens Boots Alliance (-9.2%).