Amazon's $1 billion purchase of online pharmacy PillPack solidifies the retail giant's push into the healthcare market and aligns closely with the company's shared mission to lower healthcare costs for its employees, according to CBS News MoneyWatch.
Here are four things to know:
1. Amazon entered into an agreement to purchase PillPack June 28, causing shares of competing pharmacy companies like Walgreens Boots Alliance and Rite Aid to plummet.
2. The move came as a surprise to some experts, as the retail giant shelved plans to sell drugs directly to hospitals through its Amazon Business marketplace in April, according to the report. PillPack, which delivers pre-sorted dose medication, coordinates refills and renewals, and ensures on-time delivery and shipment, represents a direct threat to the $400 billion U.S. pharmacy industry, according to the report.
3. The acquisition effectively aligns with the company's shared goal with investment firm Berkshire Hathaway and JPMorgan Chase to squeeze waste out of healthcare by dispensing with industry middlemen, such as pharmacies. The trio of companies, which announced the creation of a nonprofit healthcare company in January, selected writer and Boston-based Brigham and Women's Hospital surgeon Atul Gawande, MD, to lead the venture last month.
4. The purchase echoes the company's prior attempts to infiltrate the pharmacy industry. In 1999, Amazon acquired a 40 percent stake in Drugstore.com. However, the website shuttered after being purchased by Walgreens in 2016, the report states.
To access the full report, click here.