PillPack

PillPack — the Internet drugstore, largest in the USA, founded in 2013. Work of service is based on the individual prescription order, a dosage, packing and delivery "to a door" medicines, generally for chronic patients (diabetes, obesity, a hypertension). By the end of June, 2018 the company attracted in total $118 million investments.

History

2018: Amazon was purchased by PillPack

On June 28, 2018 announced Amazon PillPack purchase. As a result of absorption the American Internet giant becomes the direct competitor to the pharmacy chains, distributors of medicines and the companies managing benefits to drugs.

Though the price of the transaction is not set, a number of editions knows of it. So, TechCrunch and The Wall Street Journal say that the amount is about $1 billion. In 2016 the PillPack company was estimated at $361 million.

Amazon purchased the online drugstore, largest in the USA

The transaction is subject to approval of regulators, its closing is expected in  the second half of 2018.

Against the background of the statement for sale of PillPack of an action of several large suppliers of prescription drugs dropped by 7-9%. In particular, securities of CVS Health and Alliance Walgreens Boots Alliance fell in price. The quotations of Amazon jumped by 2.5%.

According to the Reuters agency with reference to data of IQVIA research company, volume of the American market of the drugs which are released according to the recipe exceeds $450 billion a year. Though PillPack predicts revenue only in $100 million at the end of 2018, the company had great opportunities for fast expansion of business thanks to the huge customer base and debugged infrastructure of deliveries which Amazon has.

Now Amazon can conduct direct negotiations with the pharmaceutical companies (without involvement of intermediate suppliers) and to give them an opportunity to sell cheap original medicine even to those clients who have no health insurances, note Reuters, referring to opinions of experts.^[1]

Notes