Amazon is buying PillPack

  • Amazon is buying PillPack

Amazon is buying PillPack

Founded out of Boston in 2013, PillPack invites customers to sign up online, and the company then dispatches "over-the-counter" and prescription medications in individual packs organized by date and time.

Parker grew up behind the counter of his father's drug store in Concord, N.H., and has spoken of his exasperation seeing customers resort to spreadsheets to figure out how to schedule and sort their medications.

There's a reason shares of CVS, Walgreens, and Rite Aid were tumbling Thursday, and it can be summed up in one word: Amazon. "We're excited to see what we can do together on behalf of customers over time".

The transaction is expected to close during the second half of 2018. It had raised $123 million in financing, most recently $5 million in debt from TriplePoint Venture Growth in August 2017, according to data from industry research firm PitchBook.

PillPack, which also serves patients with multiple chronic conditions, is authorized to deliver in 49 states.

PillPack, for the uninitiated, is an online pharmacy that makes it easy for people who take several different prescriptions a day.

As it has grown, the company has found itself entangled with some of the traditional powers in the business.

The move comes amid speculation that Amazon was planning to get into the pharmacy or drug-distribution business. In 2016, the pharmacy benefits company Express Scripts Holding Co. threatened to drop PillPack from its list of approved vendors because of its focus on delivery over storefront retail.

The company said earlier this year it will bring about 2,000 new employees to a new Seaport building, on top of an additional 900 in a new Fort Point office.

With its far-reaching and widely popular online site, Amazon moves closer to establishing beachheads in medicine chests across the US and using that muscle to alter the traditional playbook for prescription drug distribution.