On June 28, Amazon announced that they are buying off the online pharmacy startup, PillPack. With this event happening so fast, many pharmaceutical company are threatened.
Upon acquiring PillPack, an online pharmacy, Amazon was given the right to distribute prescription around the United States anytime. This has caused a huge fuss as this was considered a threat to many businesses within the industry.
The news has surprised many people as well since it was rumored that Walmart, Amazon’s biggest competitor, and PillPack has been in talks of acquiring the latter. But as it turns out, Amazon has won the deal as they have given a bigger offer of over $1 Billion.
Amazon is known for giving discounts to their customers and now a lot are expecting that they will do the same in the situation of PillPack. And with this strategy, sooner or later, people will start to buy medicinal products and prescription through this platform. Though this idea is very good for business, it might take some time before it will be implemented.
According to CNBC, a spokesperson of Express Scripts, a pharmacy benefit management organization, said that PillPack’s contract with them will be ending in July and they have not discussed anything yet. Following this event, pharmacy benefits managers might reconsider their agreement with PillPack. So lessening the price of their products might take a while.