Tuesday, July 03, 2018

Amazon and PillPack

Sometimes all you have to do is wait a few weeks... and Amazon changes the retail landscape again.  In this case, Amazon recently decided to purchase PillPack.  The PillPack deal is estimated at $1 billion dollars.  All in all, it's a pretty big change.  As the above Wall Street Journal articles mention, the Amazon/PillPack deal raises a lot of questions.  The pharmacy business is about more than dispensing and delivering medication.  Who would've thought?  At least that's a perspective Walgreen's CEO Stefano Pessina offered in Forbes.  Meanwhile, you have the Amazon and PillPack deal which quickly wiped out $15 billion dollars in value for CVS, Rite Aid, and Walgreens.

In addition to the $15 billion dollar figure, Gizmodo highlights potential data and privacy issues surrounding the deal.  Past a certain point, who knows how this will sugar out?  Retail pharmacies are big business and so is Amazon.  That said, one theme that keeps coming up is the disruptive nature of tech companies and e-commerce.

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