Business

Amazon buys online pharmacy Pillpack, causing fall in US drug retail shares

Amazon has announced it has entered into a definitive agreement to buy Pillpack, an online pharmacy based in the US which delivers medication in pre-sorted dose packaging.

The announcement indicates a move by Amazon into the pharmacy industry, which has set the share prices of some US drug retailers falling.

Rite Aid's share price is currently down by 11.57 per cent, while Walgreens Boots Alliance's is down by 10.25 per cent and CVS is down by 9.08 per cent. According to Reuters, the share prices of drug wholesalers like Mckesson, Cardinal Health and Amerisource Bergen also dropped.

Subject to the usual regulatory approvals and closing conditions, Amazon and Pillpack have said that they expect the deal to close during the second half of this year.

Amazon's worldwide consumer CEO Jeff Wilke said that it was Pillpack's experience of the pharmacy industry, combined with a focus on technology, that drew the tech giant to the company.

The terms of the deal were not disclosed, but sources reported to Tech Crunch that the acquisition was close to $1bn (£763.2m) in value.

Reports in April suggested that Pillpack was previously in talks with Walmart for a similar sized deal.

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