Amazon announced Thursday that it would acquire PillPack, an online pharmacy service that delivers medications by the dose to customers’ homes. Terms of the deal were not announced.
The move is the latest sign of Amazon’s increasing interest in the pharmacy market, a field that has been roiled by consolidations as drugstore chains have purchased prescription benefit managers. In April, CNBC reported that PillPack was in talks to be acquired by Walmart.
“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” said Jeff Wilke, Amazon’s chief executive of its consumer business in a news release. “We’re excited to see what we can do together on behalf of customers over time.”
The deal is expected to close in the second half of 2018. Shares of Walgreens and Rite Aid dropped more than 10 percent, and CVS Health dropped 9 percent after the announcement.
Founded in 2013, PillPack offers presorted dose delivery, designed to make it easier for users to balance multiple prescriptions.
“PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier,” said TJ Parker, co-founder and chief executive of PillPack, in the release. “Together with Amazon, we are eager to continue working with partners across the health care industry to help people throughout the U.S. who can benefit from a better pharmacy experience.”
