FILE PHOTO: An Amazon.com Inc driver stands next to an Amazon delivery truck in Los Angeles, California, U.S., May 21, 2016. REUTERS/Lucy Nicholson/File Photo
June 28, 2018
(Reuters) – Amazon.com Inc <AMZN.O> said on Thursday that it would buy online pharmacy PillPack for an undisclosed amount, sending shares of drug distributors and drug retailers down.
Drug retailers CVS Health <CVS.N> and Walgreens Boots Alliance <WBA.O> plunged 7 percent each in premarket trading. Shares of drug wholesalers Mckesson Corp <MCK.N>, Cardinal Health <CAH.N> and AmerisourceBergen <ABC.N> were also down.
Amazon, Berkshire Hathaway <BRKa.N> and JPMorgan <JPM.N> announced a joint venture in January, saying U.S. healthcare costs were rising too fast and holding back economic growth. The three companies said they would use big-data analysis and other high-tech tools to improve care and cut waste.
Walmart Inc <WMT.N> was looking to buy PillPack for under $1 billion, CNBC had reported in April.
Privately-held PillPack caters to patients who take multiple daily prescriptions and delivers medications in pre-sorted dose packaging and coordinates refills and renewals.
The deal is expected to close during the second half of 2018.
(Reporting by Sonam Rai in Bengaluru; Editing by Anil D’Silva)
