Drug stocks hit by Amazon health push, while tech steadies Wall St

PillPack prepackages and mails consumers pills.									Pat Greenhouse  The Boston Globe

PillPack prepackages and mails consumers pills. Pat Greenhouse The Boston Globe

The retailing behemoth made its first significant move into the pharmacy business by buying PillPack, an online company that ships medications to customers' homes, reports the Wall Street Journal.

Amazon is acquiring PillPack, an online pharmacy licensed to sell prescription drugs in all US states, excluding Hawaii.

"PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier", said TJ Parker, co-founder and CEO of PillPack. Sources told TechCrunch that Amazon is paying "just under" $1 billion for PillPack, a hefty premium seeing that PillPack was last valued at $361 million, according to financial tracking service PitchBook.

Hynes recommended buying shares of CVS Health and Express Scripts on weakness as Amazon's "bark is likely worse than the bite, at least initially". McKesson, Cardinal Health and AmerisourceBergen shares were all down after the news.

"PillPack's visionary team has a combination of deep pharmacy experience and a focus on technology", Jeff Wilke, chief executive of Amazon Worldwide Consumer, said in a statement.

The deal is expected to close in the second half of 2018.

The iShares U.S. Healthcare Provider ETF, or IHF, absorbed over $255 million worth of trades on Thursday, the most in nearly a decade and a whopping 46 times the average daily turnover for the past year. You will never see us panicking or acting under the pressure of the emotion'.

Orders of LeBron James Lakers jerseys spike
After one year with the Thunder, George liked the organization enough to re-sign there on a four-year deal instead of joining the Lakers .

Terms of the acquisition were not disclosed.

Worries at Amazon's pharmaceutical rivals began when it won approval from some state regulators for drug distribution.

Online retail giant Amazon is entering the pharmacy business after months of speculation that the company could disrupt how prescription drugs are sold the same way it upended bricks-and-mortar retail.

"This is the beginning of the pharmacy industry shakeout".

The news comes just a week after a joint venture of Amazon, Berkshire Hathaway Inc and JPMorgan Chase & Co named a CEO who will be tasked with significantly cutting healthcare costs for its estimated 1 million employees and dependents.

Walgreens bought some of Rite Aid Corp's USA stores previous year after scrapping its deal to buy the smaller rival outright.

He said PillPack could be kicked out of current PBM networks, "especially if Amazon has designs of significantly ramping its prescription volume".

Latest News