Amazon deal shakes healthcare sector

Amazon began two decades ago as an online bookseller but has mushroomed into one of the world's largest companies whose assets also include groceries and a hardware division

When Amazon announced plans to buy pharmacy startup PillPack, the reckoning across the entire industry's supply chain was swift and brutal.

PillPack sells presorted packets of prescriptions drugs, delivering them to customers in their homes.

"Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the USA who can benefit from a better pharmacy experience", T.J. Parker, co-founder of PillPack, said in the press release.

But the prospect of major retailers like Amazon getting into the business has roiled the traditional pharmacy world even further. PillPack has a relatively small market presence compared to CVS and the other industry leaders, but Amazon could scale up the operation by tapping into its massive logistics network. According to Reuters, the share prices of drug wholesalers like Mckesson, Cardinal Health and Amerisource Bergen also dropped.

Jeff Wilke, Amazon's worldwide consumer boss, said: "Pillpack's visionary team has a combination of deep pharmacy experience and a focus on technology".

Both companies expect to close the deal during the second half of this year. Customers can also email, text, or call their PillPack pharmacist any time to ask questions or clarify instructions.

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

The move is aimed to improve health care for the three companies' more than a million combined USA employees and also at the same time make it more cost-effective.

Marcelo returns to Brazil training
Brazil coach Tite has announced his starting lineup to face Mexico on Monday which includes Luis Filipe ahead of Marcelo who is back fit.

The value of the deal was not disclosed.

The purchase represents Amazon's long-awaited and much-discussed move into the pharmacy, a space ripe for disruption, especially from the company that used the internet to turn commerce on its head.

The online retail giant also announced a joint venture with JPMorgan Chase and Berkshire Hathaway aimed at lowering health costs for the companies' U.S. employees.

PillPack holds pharmacy licenses in all 50 states.

But no area of the market felt the pain worse than pharmacies themselves.

Those deals were announced after two mega insurer mergers were blocked by federal judges early previous year on antitrust grounds.

PillPack earned an "excellent" rating in PCMag's 2014 review.

Related news:

Hot News

isis-killer-beheading-video-story-top LeBron James agrees to four-year deal with LA Lakers
Jul 03, 2018 - 00:27
With LeBron now in the West, it doesn't matter who else is on his team, because the entire Western Conference will be a bloodbath. These are the types of scenarios that a team faces when LeBron comes on board.

HTC to Cut 1500 Jobs as Revenue Continues to Decline
Jul 02, 2018 - 23:45
That's according to a report from Reuters which claims that the cuts are part of a move manage its resources more efficiently. Smartphone manufacturer HTC will slash nearly a quarter of its employees in an effort to become profitable.

Notorious gangster Redoine Faid makes daring jailbreak in helicopter
Jul 02, 2018 - 23:37
The ministry said Redoine Faid's escape only took "a few minutes" on Sunday and no-one was injured or taken hostage. But he was arrested in 2011 on suspicion of masterminding a robbery that resulted in the death of a police officer.

isis-killer-beheading-video-story-top Thai Soccer Team in Cave Found With 'Signs of Life'
Jul 02, 2018 - 23:29
Alongside the draining operation, rescuers are working on a secondary plan to access the caves from above. The team have been trapped in the cave in Mae Sai district, Chiang Rai, since June 23.

isis-killer-beheading-video-story-top Lingard and England ready to continue family affair in Russian Federation
Jul 02, 2018 - 23:28
But I'm coming off the back of a hat-trick and I'm ready to go in a very important game for us against Colombia ". Then it's Sweden or Switzerland.

isis-killer-beheading-video-story-top Belgium v Japan 02 July 2018
Jul 02, 2018 - 23:24
The last team to come back from two goals down to win a World Cup knockout round match were Germany against England in 1970. Belgium striker Romelu Lukaku failed to react in time when Kompany flicked the ball towards him on the half-hour.

Boys and coach found alive in cave
Jul 02, 2018 - 22:55
The system of passageway of the cave to the team is complicated and hard for divers to navigate, making extraction challenging. Dive teams worked around the clock, including the Thai Navy SEALs and experts from the US, China, Australia and the UK.

Oil falls as Saudi, Russian output rises
Jul 02, 2018 - 22:43
President Donald Trump has urged Saudi Arabia to increase its oil output amidst the U.S. upcoming sanctions against the energy sector of the Islamic republic.

Donald Trump mocked over FART Act on trade
Jul 02, 2018 - 22:41
He has asked his team to develop ideas to remedy this situation and create incentives for countries to lower their tariffs. Walters did, however, reiterate Trump's frustrations with the existing trade system, which he sees as unfair to the US.

Roseanne Barr Claims She's Had Several TV Offers
Jul 02, 2018 - 22:14
In an EW interview, Maher explains that Barr's mental issues will prevent Hollywood executives from taking a risk on her. John Goodman , Laurie Metcalf and Sara Gilbert will continue to play the roles they originated in " Roseanne ".

isis-killer-beheading-video-story-top US Treasury Chief Mnuchin Slams Report That Trump Wants To Exit WTO
Jul 02, 2018 - 22:10
After announcing tariffs on steel and aluminum imports in early March, the USA and China have been trading retaliatory punches. Asked about reports that he is considering withdrawing from the WTO , Trump said, "I'm not talking about pulling out.

isis-killer-beheading-video-story-top LeBron James picks Lakers over Sixers, agrees to 4-year deal
Jul 02, 2018 - 21:58
That would be an unprecedented move, to have a player sit out and wait for the next summer's free-agent period. Pairing Leonard with LeBron could force the Lakers to break up part of their young core.

isis-killer-beheading-video-story-top Leishman, Woods in contention at Quicken Loans National
Jul 02, 2018 - 21:34
His fourth shot ended 35 feet from the pin just off the green, and his putt came up four feet short, yielding a double bogey. His favorite shot was a 3-wood he hammered from 282 yards onto the green at the par-5 second hole for a two-putt birdie.

isis-killer-beheading-video-story-top LeBron James' leap to Los Angeles is about more than just basketball
Jul 02, 2018 - 21:29
James originally signed for the Cavaliers in 2003 but left the franchise in 2010 to ply his trade for Miami Heat . The announcement of James' departure from OH came on Sunday through his agency, Klutch Sports.

isis-killer-beheading-video-story-top GM says US import tariffs could mean 'smaller' company and fewer jobs
Jul 02, 2018 - 20:54
The National Foreign Trade Council (NFTC) said auto tariffs will raise costs for automakers, which will eventually hit customers. Consumers "at some point" will feel the impact of Trump's tariffs in higher prices for passenger cars and auto parts.