Amazon is now tapping into the healthcare industry. In conjunction with Berkshire Hathaway and JPMorgan, the e-commerce giant has purchased PillPack. The online pharmacy allows its users to purchase medications in pre-made doses.
The company has not yet disclosed terms of the deal. But sources have said it’s just under 1 million.
And apparently, Bezos’ team wasn’t the only one vying for the pharmaceutical company. Walmart – a huge competitor – was also looking to acquire PillPack. But Amazon reportedly offered more.
After a round of funding in 2016, PillPack was valued at $361 billion. The Amazon acquisition is expected to close in the second half of 2018.
Why Does Amazon Want a Hand in the Online Pharmacy Business?
The e-health market has become huge, and everyone wants to get in on the action given its potential.
Jeff Wilke, Amazon’s CEO of Worldwide Consumer, made a statement about the acquisition in a news release. “PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” he said. “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 can operate in all 50 states, but doesn’t yet has a license to operate in international markets. Their system – PharmacyOS – is a platform that manages patient data, helping to balance medication in safe doses for customers.
PillPack Is Tackling the Drug Abuse Epidemic
A part of the reason for the company’s high valuation is the fact that it’s answering a crucial need for the American population. U.S. consumers are heavily reliant on pharmaceutical medicines, which has led to a huge epidemic of abuse. There are numerous things that must align to make a sizeable dent in that issue, but providing controlled doses is a start.
PillPack CEO TJ Parker will be staying on to run the business, and released a statement to the public regarding the business.
“PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier,” Parker said in a statement. “Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the U.S. who can benefit from a better pharmacy experience.”
The company is based out of Manchester, New Hampshire.
First supermarkets, now pharmacies. What’s next in line for the great Amazon takeover? Time will only tell.
Data Source: techcrunch.com