Amazon's new pharmacy deal ruined a perfectly good earnings report for Walgreens

Above PillPack

"You see, the pharmacy world is much more complex than just delivering certain pills or certain packages", CEO Stefano Pessina said on a post-earnings call that was dominated by discussions around Amazon's foray.

Inc said on Thursday it would buy online pharmacy PillPack, a small but significant step into the USA health care sector, sending shares of drug distributors and retailers lower.

"We are not particularly anxious", Pessina said, but added that the company was not complacent either.

"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", PillPack co-founder and CEO TJ Parker said in a statement.

CVS shares tumbled nine percent in opening trading on the news, while Walgreens Boots Alliance slumped 10.5 percent. It had raised $123 million in financing, most recently $5 million in debt from TriplePoint Venture Growth in August 2017, according to data from industry research firm PitchBook.

Here's how PillPack works: Users receive a monthly roll of pre-sorted medications with labels that include photos and instructions.

MarketWatchPillPack is geared towards patients who take multiple daily prescriptions.

"Together with Amazon, we are eager to continue working with partners across the health care industry to help people throughout the USA who can benefit from a better pharmacy experience", PillPack chief executive TJ Parker said in a statement.

With its user-friendly packaging and design, PillPack has shaken up the pharmacy business, generating more than $100 million in revenue past year. In February, the grocery chain Albertsons Cos. said it would buy Rite Aid in an effort to hold off Amazon.

The deal is expected to close during the second half of 2018. And CVS is acquiring insurer Aetna in a bid to strengthen its business managing pharmacy benefits in the face of new competition.

The company said earlier this year it will bring about 2,000 new employees to a new Seaport building, on top of an additional 900 in a new Fort Point office.

Related:

  • Former NATO Secretary General was not allowed in the US

    Former NATO Secretary General was not allowed in the US

    Current US President Donald Trump, however, chose to withdraw from the deal in May 2018. He added that he will apply for a USA visa. Department of Homeland Security.
    MovieBob Reviews: ANT-MAN AND THE WASP

    MovieBob Reviews: ANT-MAN AND THE WASP

    It was the path that we were heading in any way because they're great stories from the comics. They said only a handful of people knew the true plot.
    Morbius: Jared Leto to headline Spider-Man spin-off

    Morbius: Jared Leto to headline Spider-Man spin-off

    Of course, Leto is also set to reprise his Suicide Squad role as the Joker in an upcoming origin story film. According to Variety , the Oscar victor will star as Morbius in Sony's Spider-Man spinoff of the same name.
  • Belgium defender Toby Alderweireld sets sights on victory against England

    Belgium defender Toby Alderweireld sets sights on victory against England

    Manchester City's De Bruyne is one of three Belgium players on a yellow, along with Thomas Meunier and Jan Verthongen. That means it could come down to the teams' disciplinary records and if that doesn't separate them, drawing lots.
    Coric claims Halle Open

    Coric claims Halle Open

    He looked every bit the Wimbledon contender as he aims to return to the stage where he lost to Federer in the final past year . The 20-time Grand Slam champion fought back to level by winning the second set, helped by a choke on a volley from Coric.
    Asus Zenfone 5z to launch in India on July 4 on Flipkart

    Asus Zenfone 5z to launch in India on July 4 on Flipkart

    In a teaser image on Flipkart's twitter handle, the firm revealed Asus's new flagship and launch to be revealed on 26th June 2018. Asus ZenFone 5z is already available in some European and Asian markets with price starting from Euro 479 (roughly Rs 38,200).
  • Why Meghan Markle is ditching this signature accessory

    But the Queen's dislike for it is not the reason the Duchess of Sussex is prohibited from eating the pungent-tasting bulb. As a member of the British royal family , Meghan Markle can no longer consume garlic in public, the Daily Mail reported.

    "Know your Status" on National HIV Testing Day

    Edmonton also doesn't offer rapid testing, a test which draws a small amount of blood and gives a result in 60 seconds. People across the country are taking control of their health by getting tested for HIV on National HIV Testing Day .
    Colombia's James Rodriguez injured during Senegal World Cup game

    Colombia's James Rodriguez injured during Senegal World Cup game

    With Senegal and Japan both on four points, Colombia and Senegal could both progress with a draw but only if Japan lose to Poland. But the problem for Senegal is they've also conceded three goals, which is where I think Colombia can take that advantage.
  • Germany crash out as Korea Republic end on high

    Germany crash out as Korea Republic end on high

    Heading into the match against Germany, the South Korean player who scored the opening goal was despised by his own fans. He added: "We believed in it until the very end, we tried to shoot, but we just couldn't get the ball in".
    Germany's Joachim Low set for talks about future after World Cup exit

    Germany's Joachim Low set for talks about future after World Cup exit

    Gundogan in particular was targeted with boos in the team's friendly against Saudi Arabia on the eve of the World Cup. South Korea's 2018 FIFA World Cup campaign can be summarized with this: one stunning win and two painful losses.
    Lakers and Spurs Resume Kawhi Leonard Trade Talks

    Lakers and Spurs Resume Kawhi Leonard Trade Talks

    Therefore, it seems as though there's very little potential for any negative drama to happen between the two moving forward. The Cleveland Cavaliers star will decide whether or not to opt in to the final year of his contract with the Cavs by Friday.

Comments

Other news