Amazon to acquire a 5-year old online pharmacy startup PillPack for around $1 billion

We wrote about PillPack back in April when Walmart made the move to buy the online pharmacy startup pharmacy, for under $1 billion. Now, Amazon has outmaneuvered Walmart to acquire the 5-year old online pharmacy startup PillPack. Amazon said today it plans to acquire PillPack, a 5-year old startup is an online pharmacy offering a modern technology-based system that helps people take timely medication. The terms of the deal were not disclosed. However, given that Walmart’s bid of about $1 billion, it’s safe to say the acquisition will be in the north of $500 million. The companies expect the deal to close during the second half of the year. The share of major pharmacy companies fell after the news. Walgreens, CVS and Rite-Aid lost $11 billion in value after the news.

Founded in 2013, PillPack helps to fill, sort, and deliver all your medications in personalized packets based on when you need to take them. Their service helps you take the right meds at the right time, every time. PillPack is a pharmacy designed to provide the best possible experience for customers. For people who take multiple daily prescriptions, PillPack offers pre-sorted dose packaging, home delivery, and a commitment to customer service. These features help customers take medications as prescribed, which has been shown to improve health outcomes and lower costs. PillPack holds pharmacy licenses in all 50 states, has URAC and VIPPS accreditation, is an in-network pharmacy with most PBMs, including major Medicare Part D plans, and has built a proprietary set of software systems and tools called PharmacyOS.

PillPack cofounder and Chief Executive T.J. Parker, is the son of a pharmacist. He  grew up working at his dad’s drugstore and  making deliveries as a teenager to people who could not leave their houses. He later went to Massachusetts College of Pharmacy but discovered that he didn’t like what the business was becoming. PillPack is licensed in 47 states and has over 66 employees.PillPack cofounder and Chief Executive T.J. Parker, is the son of a pharmacist. He  grew up working at his dad’s drugstore and  making deliveries as a teenager to people who could not leave their houses. He later went to Massachusetts College of Pharmacy but discovered that he didn’t like what the business was becoming. PillPack is licensed in 47 states and has over 66 employees.

“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” says Jeff Wilke, Amazon CEO Worldwide Consumer. “PillPack is meaningfully improving its customers’ lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier. We’re excited to see what we can do together on behalf of customers over time.”

“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. “Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the U.S. who can benefit from a better pharmacy experience.”

Updates: According to the latest report from CNBC: “sources say that PillPack and Walmart were in talks for months about an acquisition for less than $1 billion, but Walmart was dragging its feet on making a final offer.”