Amazon buying online pharmacy with nationwide reach; drug store stocks dive

Amazon buys online pharmacy in move into drug business | TheHill

Amazon announced on Thursday it had signed a deal to acquire PillPack, an online pharmacy that organizes prescription medication by the dose and delivers it to customers. Its pharmacy is based in Manchester, N.H., and its business operations are located in Somerville, Mass. PillPack and Amazon said they expected to close the deal by the end of the year. "We're excited to see what we can do together on behalf of customers over time".

Amazon, which has become a retail behemoth since its start as an online bookseller in 1994, is known for its willingness to forego profit, while slashing prices to win customers.

Online retail giant Amazon is entering the pharmacy business after months of speculation that the company could disrupt how prescription drugs are sold the same way it upended bricks-and-mortar retail. Chief Executive Officer Jeff Bezos signaled his interest in health care earlier this year when he teamed up with Berkshire Hathaway Inc.'s Warren Buffett and JPMorgan Chase & Co.'s Jamie Dimon to form a health care company to manage the health plans of their more than 1 million employees.

In April, CNBC reported that Walmart was looking to buy PillPack for less than $1 billion.

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

Pharmacy shareholders will perhaps find solace in the fact that they're not the only industry to have billions in market value erased by a single Amazon announcement. Shares of Cardinal Health, AmerisourceBergen, McKesson, and Express Scripts all dropped more than 3% on the news.

Oldest Player in World Cup History Saves Penalty Kick for Egypt
Saudi Arabia scored a dramatic 95th-minute victor to beat Egypt 2-1 and finish their World Cup campaign on a high in Volgograd. He became the first player to be sent off for the World Cup hosts since Itumeleng Khune's red card for South Africa in 2010.

CVS shares tumbled 8.6% in pre-market trade on the news, while Walgreens slumped 8.5%.

CVS Health noted that PillPack isn't the only company in the space with drug delivery capabilities.

Amazon did not say how much it was paying for PillPack.

With its far-reaching and widely popular online site, Amazon moves closer to establishing beachheads in medicine chests across the USA and using that muscle to alter the traditional playbook for prescription drug distribution.

"When Amazon sneezes, everybody else catches a cold", said Joseph Feldman, an analyst with Telsey Advisory. It's raised more than $118 million from brand-name investors including Accel, Sherpa Capital and NY rapper Nas's Queensbridge Venture Partners. PillPack already raised over $120 million in funding, according to Crunchbase.

Related news:

Hot News

isis-killer-beheading-video-story-top Communities react to travel ban
Jun 29, 2018 - 02:36
The court, she wrote, was "blindly accepting the Government's misguided invitation to sanction a discriminatory policy". Mr Trump tweaked the order after the 9th U.S. circuit court of appeals in San Francisco refused to reinstate the ban.

isis-killer-beheading-video-story-top Google is Rolling Out a Fix For The Chromecast Outage
Jun 28, 2018 - 19:24
Google is acknowledging the issue, confirming the problems to TechCrunch , but isn't getting specific at this stage. People reported being unable to stream on Chromecast , or use Chromecast to connect to other devices.

isis-killer-beheading-video-story-top Evangeline Lilly Doesn't Have Time for Men Complaining About Superhero Costumes
Jun 28, 2018 - 19:12
The two images show Brie Larson in full costume, with the first of them having her facing forward with energy blasts ready to go. As a first-generation American these were the stories that were the most accessible when going out to movies with my family.

isis-killer-beheading-video-story-top Jared Leto sinking teeth into Marvel's Morbius the Living Vampire
Jun 28, 2018 - 18:33
Michael Morbius , a biochemist who injects himself with a serum derived from bats in an attempt to cure a fatal blood disease. It remains to be seen how the Morbius movie will connect to Tom Holland's Spider-Man adventures, if it ever will at all.

isis-killer-beheading-video-story-top New Clinic Opens In St. Petersburg Ahead Of National HIV Testing Day
Jun 28, 2018 - 18:26
National HIV Testing Day is a reminder to get the facts, get tested, get involved and to take care of yourself and your partner. Philip said the state has two programs it plans to roll out to all 67 county health departments by the end of 2018.

isis-killer-beheading-video-story-top Trump's half-truths on Harley overseas plans
Jun 28, 2018 - 17:48
How would this work? Meaning, each Harley Davidson bike is now about $2,200 more expensive to export, according to the company. Harley-Davidson says it will not raise its prices to avert " an immediate and lasting detrimental impact " on sales in Europe.

isis-killer-beheading-video-story-top Harry Kane dropped as England prepare to play B team against Belgium
Jun 28, 2018 - 17:35
Belgium has fared little better - winning just one knockout game at the big dance since finishing fourth in the 1986 World Cup . Totally understand all the counter-arguments, including momentum and, yes, the possibility of facing Colombia.

isis-killer-beheading-video-story-top Lukaku aiming to win World Cup
Jun 27, 2018 - 03:11
While Lukaku may not be back in full training, Eden Hazard (calf) and Dries Mertens (ankle) are both back after missing yesterday's session.

isis-killer-beheading-video-story-top United States approves Epidiolex, first marijuana-derived drug
Jun 27, 2018 - 03:10
Epidiolex, manufactured by GW Pharmaceuticals , is meant to treat seizures associated with two rare and severe forms of epilepsy. Epidiolex is also the first prescription created to treat children with Dravet syndrome , according to the FDA's announcement.

isis-killer-beheading-video-story-top Evangeline Lilly calls out male Marvel actors for complaining about their suits
Jun 27, 2018 - 01:37
Michael Douglas will be the first to tell you he has had an illustrious career acting in Hollywood, but that doesn't mean he didn't learn a thing or two on the set of "Ant-Man and the Wasp".

isis-killer-beheading-video-story-top Lovren's Croatia through to World Cup last 16 as group winners
Jun 27, 2018 - 01:35
But Croatia made certain of maximum points from their opening three matches when Ivan Perisic netted in stoppage time . Croatia had their first clear chance when Badelj's missile crashed onto the bar six minutes into the second half.

isis-killer-beheading-video-story-top Prince Harry and Meghan Markle to visit Croke Park
Jun 27, 2018 - 01:35
The Queen was all smiles at the event as she shook hands with David Beckham and Nicola Adams before the ceremony began. Meghan Markle had a whirlwind first month as a royal , and her schedule is only getting busier by the day.

isis-killer-beheading-video-story-top Our iPhone friends can now download the iOS 12 public beta
Jun 27, 2018 - 01:22
Those predictions are based on previous Apple release history and trying to predict future behavior based on historical patterns. Apple has run a Switch to iPhone campaign for years and offers a Move to iOS app for Android switches in the Google Play Store.

isis-killer-beheading-video-story-top Itchy lump on woman's face is actually parasitic worm crawling under skin
Jun 26, 2018 - 04:05
But humans can become accidental hosts of the thread-like worm - meaning the worm doesn't intend to infect a human. DNA testing subsequently revealed the removed creature to be the parasitic nematode known as Dirofilaria repens .

isis-killer-beheading-video-story-top Woman dubbed 'Permit Patty' calls cops on girl selling water
Jun 26, 2018 - 02:24
Since the story went viral, musician Jonathon Brannon stepped up and offered to buy the family four tickets to the theme park. Ettel is the CEO of TreatWell Health , a cannabis product company, specialising (bizarrely) in cannabis products for pets.