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Amazon’s PillPack acquisition could transform online pharmacy market

Move signals e-commerce giant’s interest in the health care sector. Meanwhile, FDA warns of online medicine scams.

An example of a PillPack shipment.
An example of a PillPack shipment.

In what seems like a nanosecond, ordering Rx meds online has transformed from a dangerous place for cost-conscious consumers to shop—think fears of adulterated or counterfeit medications—to an accepted alternative to retail pharmacies.

Amazon’s summer splash into the online health care market with the acquisition of PillPack could rock the world of “brick-and-mortar” pharmacies, even those that deliver meds to patient doorsteps.

Take, for example, this July 3 Forbes.com article headline, “Amazon: How The PillPack Acquisition Is Shaking Up The Health Care Sector.” The article did provide encouragement to retail competitors, noting: “We expect that the move will force some changes on the incumbents, but we don’t think that any of them will be waving a white flag anytime soon. As an example, just last week CVS announced that it will begin shipping prescriptions nationwide for a nominal $4.99 fee. Walgreens also offers the same one-day service for $19.95 (we think that price may drop a bit now).”

In a press release announcing the acquisition, PillPack Co-Founder/CEO T.J. Parker said, “PillPack makes it simple for any customer to take the right medication at the right time and feel healthier. 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.”

The press release noted, “Completion of this transaction is subject to regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2018.”

PillPack had launched its services in 31 states when Healthcare Packaging featured the firm’s personalized medication and vitamin packaging in 2014. Now, says a PillPack spokeswoman, “PillPack is licensed nationwide in the U.S. We do not currently ship to Hawaii, or internationally. We serve tens of thousands of customers. Our primary pharmacy is located in Manchester, NH. We also have a number of pharmacies across the country, including Miami, Brooklyn, and Austin.”

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