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Walgreens and CVS stocks plummet as Dr. Amazon buys an online prescription service

Walgreens and CVS stocks plummet as Dr. Amazon buys an online prescription service
[Photo: courtesy of PillPack]

Jeff Bezos wants to be your next pill pusher, and investors in traditional pharmacies are already getting nervous.

Shares of Walgreens and CVS Health Corp. dropped in pre-market trading today on news that Amazon.com Inc. is poised to acquire PillPack, an online pharmacy service that holds licenses in all 50 states. In 2014, Fast Company described PillPack as the “Amazon Prime of prescription medication.” Amazon announced the deal early this morning.

“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” Jeff Wilke, Amazon’s chief customer service exec, said in a statement.

Terms of the acquisition were not disclosed. Amazon says it expects the deal to close during the second half of this year, pending regulatory approval. Walgreens stock was down 9.46% in pre-market trading. CVS was down 8.35%. News of the acquisition is also a bitter pill to swallow for Walmart, which was said to be looking into buying PillPack for under $1 billion earlier this year, according to CNBC.

PillPack was founded in 2013 and had a reported valuation of about $330 million as of two years ago, according to Fortune. It counts Accel Partners, Atlas Venture, CRV, Founder Collective, Menlo Ventures, Sherpa Ventures, Techstars among its investors. The company is aimed at people who take multiple prescriptions, offering services like pre-sorted dose packaging and home delivery.

PillPack was a 2014 finalist for Co.Design‘s Innovation By Design Awards.

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