Amazon Makes $1 Billion Splash in Health Care, Buying PillPack

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From Bloomberg:

Amazon.com Inc. is buying its way into the heart of the U.S. health-care system, instantly shaking up a prescription-drug industry already in the midst of a broader transformation.

Insurance companies and drug-benefit managers have struck a series of deals in recent months designed in part to thwart a potential big splash in the health world from Amazon. But the online retail giant’s decision to buy online pharmacy PillPack rapidly accelerates the threat posed to entrenched retailers, suppliers and middlemen.

Most immediately, the move represents a formidable challenge to pharmacy chains including Walgreens Boots Alliance Inc. and CVS Health Corp., the two largest drugstore chains in the U.S. Walgreens shares sank 8.5 percent at 10:49 a.m. in New York, while CVS shares shed 8.9 percent.

“This provides an avenue for Amazon to disrupt major pharmacy chains the way that they’ve disrupted booksellers, pet supplies, clothing and other big-box retailers,” said Lisa Bielamowicz, president of consultancy Gist Healthcare.

Link to the rest at Bloomberg

4 thoughts on “Amazon Makes $1 Billion Splash in Health Care, Buying PillPack”

  1. And you can bet that once this is handled by Amazon, they won’t refuse to fill a woman’s prescription and overriding her doctor’s order because of “firmly held beliefs”.

    Funny, how customers tend to notice that kind of thing…

  2. too bad it doesnt also target ‘scripts express,’ military insurance/ tricare for life… which just last month usa prez signed a budget that started charging all retired vets [millions of them] $$$$$ on each rx that were free before –and the only way for a ret. vet to try to only pay the 7-15 dollers per rx, is to buy ONLY generic. No real choices.

    There goes that gigantic tax break for retired pp

    Our scrip bill went up 1000 a year. From 0 on generics, and a reasoned amount on brand name

    We found recently actually cheaper to buy at walmart and cvs than at scripts xpress. Point is dont care where competent meds come from, as long as clean and proper in potency. However generics made by big pharma in china are a source of concern about quality for many. We noticed that one generic absolutely does not work as well as the brand name, even tho brand name is sky high $

    Maybe amz can help gve us a reasoned alternative to the military FUBAR system of meddies apportioning esp for retired military who gave their all and now are given little.

  3. “Insurance companies and drug-benefit managers have struck a series of deals in recent months designed in part to thwart a potential big splash in the health world from Amazon.”

    Sounds like the DoJ needs to look into that bit …

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