Amazon to acquire online pharmacy PillPack

Amazon Inc has planned to buy online pharmacy PillPack for an undisclosed amount, which could strike the shares of drug distributors and drug retailers down.

 

Drug retailers CVS Health and Walgreens Boots Alliance plunged 7 percent each in premarket trading. Shares of drug wholesalers Mckesson Corp, Cardinal Health and AmerisourceBergen were also down.

 

In January, Amazon, Berkshire Hathaway and JPMorgan had announced a joint venture, saying U.S. healthcare costs were rising too fast and holding back economic growth. The three companies said they would use big-data analysis and other high-tech tools to improve care and cut waste.

 

Walmart Inc was looking to buy PillPack for under $1 billion, CNBC had reported in April.

 

Privately-held PillPack provided online medication to the patients who take multiple daily prescriptions and delivers orders in pre-sorted dose packaging and coordinates refills and renewals.

 

The deal could be finalized during the second half of 2018.