Last week, Amazon, JPMorgan Chase and Berkshire Hathaway announced Boston doctor Atul Gawande as the chief executive of the companies' new health care venture, which will be based in Boston. Walgreens stock was down 9.46% in pre-market trading.
"PillPack's visionary team has a combination of deep pharmacy experience and a focus on technology", Jeff Wilke, Amazon CEO Worldwide Consumer, said in a statement.
"PillPack is a wonderfully convenient service for getting prescription and non-prescription medications shipped to your door and doled out in packets with labeling that tells you when to take them", we wrote at the time. "PillPack is meaningfully improving its customers' lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier".
PillPack was reported in April 2018 to be in talks to be acquired by Walmart, for a price of less than $1 billion.
The online retail giant also announced a joint venture with JPMorgan Chase and Berkshire Hathaway aimed at lowering health costs for the companies' USA employees.
The acquisition follows months of rumors that Amazon was eyeing consumer healthcare services, particularly the pharmacy space. "Even if PillPack is a network provider today, it does not mean it will be a network provider in the future, especially if Amazon has designs of significantly ramping its prescription volume". Pharmacy benefit manager Express Scripts was also lower.
It expects to complete the deal in the second half of the year. It also handles deliveries, refills, and adjustments to medications.