Amazon buys an online pharmacy; Walgreens, CVS investors get indigestion
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Amazon.com Inc. is buying PillPack, an online pharmacy that offers pre-sorted dose packaging and home delivery.
Financial terms weren’t disclosed.
Amazon said Thursday PillPack offers a combination of deep pharmacy experience and a focus on technology.
The company, which has its primary pharmacy in Manchester, New Hampshire, ships to all states except Hawaii.
The companies expect to close the deal later this year.
Investors expected Amazon to use its muscle to reduce costs and drug prices, and that led to sharp losses for drugstores, pharmacy benefits managers and companies that distribute medications.
Amazon rose 2.5 percent to $1,701.45 while Walgreens fell 9.9 percent to $59.70, and medication distributor Cardinal Health shed 4.8 percent to $50.37. Pharmacy benefits manager Express Scripts dipped 1.4 percent to $77.62.
Amazon also announced a new program under which contractors around the country can launch businesses that deliver Amazon packages, meaning Amazon will have new ways to deliver products without relying on companies like UPS and FedEx. UPS lost 2.3 percent to $105.88 and FedEx declined 1.3 percent to $226.67.