ONLINE retail giant Amazon is about to be the industry disrupter many suspected it would be, announcing plans to enter the pharmacy business.
Amazon said on Thur that it would acquire PillPack, an online pharmacy that seeks to simplify medication for people who take multiple drugs, by home delivery of prepacked medicines.
PillPack’s website says it is licensed to ship prescriptions in 49 states in the US and, in Nov 2017, its ceo said it was on track to post more than $100 million in revenue for 2017.
Shares of Walgreens Boots Alliance, CVS Health and Rite Aid have plunged a total estimated $11 billion on news of the deal, CNBC reports.
Amazon will pay about US$1 billion (AU$1.35 billion) for the Boston-based company, according to one report.
The transaction is expected to close in the second half of 2018, according to a statement from the companies and one Wall Street analyst believes the acquisition may also hurt the valuations of drug supply companies, who will find their pricing under pressure with Amazon’s buying leverage.
The Pharmacy Guild of Australia has highlighted to Pharmacy Daily that “the Australian regulatory environment for prescription medicine supply may be an impediment to Amazon, but so be it because our regulatory environment is beneficial for patient safety and quality use of medicines.
“It will always be preferable for patients to receive face-to-face advice and guidance from a flesh and blood pharmacist when receiving prescription medicines,” the Guild said, also referencing the number of PBS scripts accessed by concession card holders challenging Amazon’s pricing model.