Amazon acquires an online pharmacy company, PillPack, showing competitors that they are acquiring more to truly offer everything possible.
This acquisition also marks Amazon’s introduction into the pharmaceutical industry and the announcement has already effected the share prices of their prescription competitors. The competing drug store stocks dipped after the announcement including Walgreens Boots Alliance Inc. (down 9.8 percent), Express Scripts Holding Co (down 2.8 percent), and CVS (down 9.2 percent).
The companies were the heads of the pharmacy benefits management business giving them an advantage in the pharmaceutical industry. Amazon sees the value with investing in this new venture and is discussing insurance with their partner J.P. Morgan for retail opportunities.
This new acquisition can also benefit the new merger with Whole Foods to provide pharmacy service through their retail stores. Amazon hopes that they can change the service experience for pharmacy customers.
They have applied for multiple pharmacy licenses and is working with the Jefferies health care team to ensure an efficient pharmacy service. Amazon’s stock share price was not effected by the announcement but led to drug store stocks to dip. For more on the new deal with Amazon check out the video above.
