Amazon.com Inc shared the information that it would takeover medications-by-mail company PillPack for an undisclosed amount, sending shares of drug distributors and drug retailers down. This news already shaken up the drugstore business in the US.
PillPack packages organize and deliver medicines. It sends consumers packages with the specific number of medications they’re supposed to take at specific times.
Amazon is expecting the deal will be closed during the second half of 2018. This news proved Amazon’s intentions to move further into the health-care industry.
According to PillPack website, it has a license to ship prescriptions in 49 states. And according to the sources, Amazon paid roughly $1 billion to PillPack. PillPack as the start-up raised $118 million in funding from investors including CRV and Menlo Ventures, and then it reached more than $100 million in revenue in 2017. In 2016 it was reported to be valued at $330 million.