The company, which has its primary pharmacy in Manchester, New Hampshire, ships to all states except Hawaii.
But today's deal comes with few details and no promise that Amazon will be able to scale up PillPack's business, which earned about $100 million in 2017. "We would not also be surprised to see them push into other areas of healthcare".
"Not only has Amazon finally made a solid move into pharmacy, it has done so via an innovative supplier which helps patients manage and organize their prescription drugs", Saunders said in a research note.
PillPack organizes and delivers prescription medications for its customers, including those with multiple chronic conditions, and is authorized to deliver in 49 states.
The company's board authorized a $10 billion stock buyback, a hefty sum given the $65.7 billion market cap at Wednesday's close. PillPack also has relationships with most major drug-benefit managers, including Express Scripts and CVS, and says it works with most Medicare Part D drug plans. "PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier", its cofounder and CEO TJ Parker said in a press release. The news rattled the drug-retail business, sending stocks of CVS, Walgreens, and Rite Aid plunging.
The move sent shares of drug distributors and retailers lower.
"When Amazon sneezes, everybody else catches a cold", said Joseph Feldman, an analyst with Telsey Advisory.
"In our view, this is only the first play in what will be an increasingly aggressive strategy by Amazon to develop a much more significant presence in the pharmacy market", he said. Acquiring PillPack's networks helps Amazon surmount those hurdles.
Now tell us what you think! It counts Accel Partners, Atlas Venture, CRV, Founder Collective, Menlo Ventures, Sherpa Ventures, Techstars among its investors. PillPack already raised over $120 million in funding, according toCrunchbase.