The online retailer will reportedly pay about $1 billion to acquire PillPack, which delivers prescriptions to 49 states and whose business depends on people who take daily prescription medications. Earlier this year, Amazon, Berkshire Hathaway and JPMorgan Chase announced new healthcare joint venture and recently named Dr. Atul Gawande Chief Executive Officer of their newly-formed company to address USA employee healthcare.
PillPack runs a platform known as PharmacyOS, which manages patient data and figures out how to even out prescription drugs in safe doses for customers.
"While Amazon's focus and interest in pharmacy to date has been somewhat cloudy, [Wall] Street will see this as a full-frontal attack", Eric Coldwell, an analyst at Baird Equity Research, wrote in a note to investors, adding that companies in the prescription drug supply chain were being "crushed".
The remaining equity is owned by the firm's employees, the person said.More news: Man arrested in July 4 attack plot in Cleveland
"While we can argue that PillPack's scale is minuscule and it is hard to envision it being particularly relevant broadly for the foreseeable future it just won't matter frankly".
It is in-network with all major pharmacy benefit managers, including CVS Caremark, Express Scripts, Optum Rx, Prime Therapeutics, Humana Pharmacy Solutions, Cigna, Aetna, MedImpact, EnvisionRx and CastiaRX.
Walgreens doesn't seem too anxious.
"We know that we have to change the level of our services to the customers and we are working quite hard on that direction, but we are not anxious", Pessina said.More news: Social Reactions: LeBron James joins the Los Angeles Lakers
"The pharmacy world is much more complex than just delivering certain pills or packages", said Pessina.
Some analysts played down the immediate threat Amazon poses. Customers can use the technology to contact pharmacists that can answer questions.
PillPack earned an "excellent" rating in PCMag's 2014 review. The two reached an agreement a month later. Amazon now sells over-the-counter drugs through a partnership with Perrigo It also has pharmacy licenses in a number of states, in addition to being fully licensed to distribute medical devices across the United States.
But all the companies said on Thursday was the deal was subject to some regulatory approvals and that the companies hope to close the transaction during the second half of this year. The e-commerce giant previously bought home security tech startup Ring for a reported $1.2 billion last February.More news: Capital Gazette Shooting Suspect Sued News Outlet For Defamation In 2012