In an interview with WBUR earlier this year, TJ Parker, one of PillPack's co-founders, said retail pharmacies haven't caught up with the reality of people who take multiple medications, meaning patients do a lot of work themselves.
US stocks swung between gains and losses on Thursday, as Amazon's foray into drug retailing whipped the healthcare sector, while a rise in financial stocks for the first time in 14 days cushioned the markets. McKesson, Cardinal Health and AmerisourceBergen shares were all down after the news.
Amazon and PillPack said they expected to close the deal by the end of the year, subject to regulatory approval.
The deal comes as the health care industry is undergoing a series of convulsions in response to rising costs and pressure on drug makers, pharmacy benefit managers, and insurers. Those ties will give Amazon access to much of the prescription drug market in the U.S.
PillPack stands out from the crowd in both its ability to deliver to your door as well its organized and regimented packaging, often chronic medications will come in daily or weekly doses all separated out to eliminate confusion.
Its software platform, PharmacyOS, was built in-house and helps customers manage their pill intake with real-time notifications and an online dashboard. Acquiring PillPack's networks helps Amazon surmount those hurdles.
Some analysts played down the immediate threat Amazon poses.
Prescription drugs sales are largely intertwined with groceries and personal items like makeup and shampoo and Amazon already sells bulk packs of latex gloves, bed pads and syringes.
The company's backers include Accel Partners, Atlas Venture, CRV, Founder Collective, Menlo Ventures, Sherpa Ventures and Techstars.
On its own, PillPack had raised $118 million in funding from venture capital firms and has been valued at $360 million. In April, CNBC reported Walmart Inc. was in talks to buy the company for "under $1 billion", citing unnamed sources.
Pessina added that physical pharmacies "will continue to be very, very important in the future".
Trump threatens 20 percent U.S. tariff on EU car imports
In a retaliatory move, China responded with a 25% tariff on U.S. imports including Bourbon, which will come into play on 6 July. Commerce Department is investigating whether imports of automobiles and auto parts pose a risk to national security.
First lady's shelter visit overshadowed by jacket
Another School of Melania whisperers thought the jacket, like that white pantsuit, was directed at President Donald Trump . The show cut to a clip of the first lady saying she planned to figure out how she could help the kids who were detained.
WTF??? Priest Slaps Crying Baby During A Baptism!
The 40-second video has sparked outrage across social media with one user saying: "I probably would have slapped the dude myself". The shocked congregation can be heard to gasp at the strike from the priest and the scene that was unravelling in front of them.
US Open: Tiger Woods Trolled By Wendy's After Triple Bogey
Open again. "Have you seen the way I've been swinging?", said Woods, who hit 79 percent of his fairways in the second round. So I knew I was in for a tough day when I saw that, and then I heard it was going to pick up even more around 11.
Russia kick-starts campaign with a thumping win
On the break Zobnin drove forward and his shot was parried clumsily by Al-Mayoof as Saudi Arabia cleared the danger. Subs not used: Lunev, Semenov, Kudryashov, Granat, Aleksey Miranchuk, Anton Miranchuk, Erokhin, Smolnikov, Gabulov.
Carlos Vela, Javier Hernandez score in Mexico win
Miguel Layun pressed for a second goal before the break but his shot from a low cross-field drive was tipped away by Jo Hyeon-woo. Son Heung-min scored a consolation goal for South Korea in injury time, sending a powerful shot past goalkeeper Guillermo Ochoa .