Amazon's attack on the pharmacy industry has begun

Share
Amazon's attack on the pharmacy industry has begun

"Together with Amazon, we are eager to continue working with partners across the health care industry to help people throughout the USA who can benefit from a better pharmacy experience".

PillPack, which launched in 2014, is available in every U.S. state except Hawaii.

"With Amazon + PillPack this eliminates the need to stand in line at the pharmacy which may help overcome past barriers, especially if that patient has issues with mobility or transportation", said Forrester Analyst Arielle Trzcinski. Terms of the deal were not disclosed, but TechCrunch and Bloomberg reported the deal was for "just under $1 billion".

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. Investors immediately stripped billions in value from brick-and-mortar pharmacy stocks. Walgreens stock was down 9.46% in pre-market trading. The big pharmacy chains have been bracing for Amazon's arrival, and this deal could "shake up the drugstore industry", per CNBC. McKesson, Cardinal Health and AmerisourceBergen shares were all down after the news. The startup serves tens of thousands of customers and last summer launched PharmacyOS, a system created to simplify interactions between pharmacies, patients and payers and assist patients who manage multiple prescriptions.

Moreover, Amazon is working with Warren Buffett's Berkshire Hathaway Inc. and JPMorgan Chase & Co. on a joint venture that will provide healthcare services to their more than 1 million employees.

"While we can argue that PillPack's scale is minuscule and it is hard to envision it being particularly relevant broadly for the foreseeable future it just won't matter frankly".

"We wouldn't be surprised to see pharmacies in Whole Foods at some point", he told the news service.

Some analysts played down the immediate threat Amazon poses.

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

In 2017, the company gained approval from more than a dozen states to become a wholesale pharmaceutical distributor.

TJ Parker, a second-generation pharmacist and the company's chief executive officer, and Elliot Cohen, a computer scientist and the chief technology officer, each own roughly 10 percent of the online prescription drug retailer, a person familiar with the matter said.

Share

Advertisement

Related Posts

SUPREME SHOWDOWN: Trump Creates CONFIRMATION Team as the Left Vows to Fight
That means Democrats have a steep hill to climb if they intend to preserve the decisions on groundbreaking cases like Roe V. Hodges. "And that's what I want to see in this nominee", she added.

Treasury chief Mnuchin denies report that Trump wants to exit WTO
The White House press office did not immediately respond to a request for comment, and neither did the U.S. It would totally (screw) us as a country", a source who's discussed the subject with Trump told Axios .

LeBron James brings the LA Lakers what they crave the most: relevance
The Cavaliers averaged over 1.1 points per possession on pick-and-roll plays when James passed the ball off to his teammates. O'Connor also reported James is not expected to sign with the Lakers on a long-term deal, if he does choose Los Angeles.

Rape of 7-year-old girl sparks angry protests in India
They were booked under relevant sections of the IPC and the Protection of Children from Sexual Offences (POCSO) Act. Taking to Twitter, the Gandhi scion said the brutality that the child was subjected to sickens him.

Manhunt Under Way In France After Prisoner Escapes In Helicopter
According to the sources, three armed gunmen arrived at the entrance of the prison demanding Faid's release to create a diversion. In 2013, he escaped after seizing four guards as human shields and blowing several doors off with dynamite.

LeBron James Posts Sweet Goodbye To Ohio. Hollywood Celebs Say Hello
Stephenson attempted to get under James' skin throughout the seven-game series and they had some frosty moments. After a sub-par start to the season, and a vote of no confidence by James, Blatt found himself ousted.

76ers still have 'strong' interest in acquiring Kawhi Leonard
If the Lakers are able to acquire Leonard - which they must do given what happened with Paul George - life would be changed. Johnson said he'll step down as president if the Lakers are unable to get big-name free agents in the next two years.

Neymar gives Brazil a 1-0 lead against Mexico
Their opponents once again leave the World Cup at the last 16 stage and couldn't replicate their performance against Germany. Mexico were truly magnificent in beating Germany, but they were beaten brutally by Sweden in their final group stage match.

LeBron James Signs 4-year $154 Million Deal with the LA Lakers!
Paul George entered free agency as the key piece in the puzzle that could've led to a new super team in LA with the Lakers. On Friday, James informed the Cavs that he was not exercising his $35.6 million option and becoming a free agent.

Roseanne Says She Has New Show in the Works-Almost
As an actress, she has been known to loudly express her frowned-upon ideologies and viewpoints , specifically on social media. The 65-year-old actress and comedian did not name any of the networks now offering her a show during the interview.

© 2015 ExpressNewsline. All Rights reserved.