- Amazon sent shockwaves through the healthcare industry when in June 2018 it acquired online pharmacy PillPack in a $US750 million deal.
- At the time of the deal, the company was on track to make $US299 million in annual revenue, according to a pitch deck reviewed by CNBC reporter Christina Farr.
- In 2019, that number was expected to double to $US635 million. PillPack projected 2020 revenue of $US1.2 billion, CNBC reported.
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At the time that Amazon acquired PillPack, the pharmacy startup was making hundreds of millions in revenue, CNBC reported.
In June 2018, Amazon bought online pharmacy startup PillPack for about $US750 million. The deal sent shockwaves through the healthcare industry as Amazon’s playbook for upending healthcare got clearer.
At the time of the deal, the company was on track to make $US299 million in annual revenue, according to a pitch deck reviewed by CNBC reporter Christina Farr. In 2019, that number was expected to reach $US635 million, before doubling again to $US1.2 billion in 2020. That would still be a relatively small piece of the US’s massive market prescription drug market – pharmacy chains like CVS and Walgreens, for instance, make hundreds of billions in revenue.
PillPack mails prescriptions to people who take multiple medications, packaging them together based on dose. The company has pharmacies around the country that send out medication via mail.
A representative for PillPack declined to comment on the report.
So far, Amazon hasn’t said much about what its plan is for PillPack. CNBC reported that a group of health insurers approached PillPack about providing its services to their customers, though no agreement has yet been reached.
Former Aetna CEO Mark Bertolini told Business Insider’s Rich Feloni in 2019, that from where he Bertolini sits, the deal had less to do with running a pharmacy and was more about finding a new way to get into people’s homes.
“Amazon bought PillPack, but it wasn’t about the pills,” Bertolini said. “It was about getting into the home with Alexa where they can learn more about what we can do to provide health.”
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- 10 pharmacy startups that could be M&A targets after Amazon’s acquisition of PillPack
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