Amazon is buying online pharmacy business PillPack
Customers pay a monthly service fee, which is often covered by insurance companies and Medicare Part D plans.
Amazon announced today it is buying PillPack, giving the online giant the ability to ship prescription drugs around the country.
Walmart was reportedly in talks to buy PillPack, but Amazon stepped in with a $1 billion offer. The deal is expected to close during the second half of 2018.
The deal follows Amazon's offer of a Prime membership to Medicaid beneficiaries in a move seen as direct competition to Walmart.
Shares of CVS Health, which is going through the regulatory process to merge with Aetna, fell after Thursday's announcement, as did shares of Walgreens Boots Alliance and Rite Aid, according to CNBC.
PillPack is an online pharmacy that offers pre-sorted doses of medications and home delivery in all states except for Hawaii, according to the company.
It is in-network with all major pharmacy benefit managers, including CVS Caremark, Express Scripts, Optum Rx, Prime Therapeutics, Humana Pharmacy Solutions, Cigna, Aetna, MedImpact, EnvisionRx and CastiaRX.
PillPack is a pharmacy designed for people who take multiple daily prescriptions, delivering them in pre-sorted dose packaging, coordinates refills and renewals.
Originally founded in 2013, the company has raised around $100 million in funding. Customers using the platform pay a monthly service fee, which is often covered by insurance companies including Medicare Part D.
"PillPack's visionary team has a combination of deep pharmacy experience and a focus on technology," said Jeff Wilke, Amazon Worldwide Consumer CEO. "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's primary pharmacy is located in Manchester, New Hampshire, with its engineering, design, business operations and marketing teams located in in Somerville, Massachusetts and its advisory center and other corporate functions in Salt Lake City, Utah.
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com
