Amazon has announced that it has acquired the online pharmacy PillPack that allows users to buy medications in pre-made doses just a week after appointing a CEO for its healthcare joint venture with Berkshire Hathaway and JPMorgan.
While the terms of the deal have not been disclosed, sources close to the matter have revealed that the e-commerce giant purchased the company for just under $1bn.
PillPack had also reportedly been in talks with Walmart for an acquisition though the deal fell through once Amazon stepped in with a much higher offer. The online pharmacy was valued at $361m back in 2016 and the deal is likely to close during the second half of this year.
Amazon CEO of Worldwide Consumer, Jeff Wilke praised the deal and highlighted PillPack's potential to change people's lives in a press release, saying:
“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology. 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 is currently able to operate throughout the entire US with a license to operate in all 50 states. However, the online pharmacy has not yet made the jump to operating on an international level. PillPack's proprietary system, PharmacyOS is a platform that is able to manage patient data to provide users with safe doses of medication which could help curb the epidemic of abuse in the US.
Co-Founder and CEO of PillPack, TJ Parker will stay on to run the business once the acquisition by Amazon is completed during the second half of 2018.
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