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- Amazon sent shockwaves through the healthcare industry when in June 2018 it acquired online pharmacy PillPack in a $750 million deal.
- At the time of the deal, the company was on track to make $299 million in annual revenue, according to a pitch deck reviewed by CNBC reporter Christina Farr.
- In 2019, that number was expected to double to $635 million. PillPack projected 2020 revenue of $1.2 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 $750 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 $299 million in annual revenue, according to a pitch deck reviewed by CNBC reporter Christina Farr. In 2019, that number was expected to reach $635 million, before doubling again to $1.2 billion in 2020.
That’d 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."
Read the full story of the Amazon-PillPack deal at CNBC.
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- Amazon’s playbook for upending healthcare just got a lot clearer — here’s why it should terrify the pharmaceutical industry
- 10 pharmacy startups that could be M&A targets after Amazon’s acquisition of PillPack
- The man who predicted that Amazon would buy Whole Foods now expects the tech giant will soon be the world’s fastest-growing healthcare company
See Also:
- Dispensed: Troubles at uBiome, pharma giant Merck’s plan to upend the $20 billion HIV market, and why insurers are starting to embrace brands like SmileDirectClub
- Silicon Valley startup uBiome raised $105 million on the promise of exploring a ‘forgotten organ.’ After an FBI raid, ex-employees say it cut corners in its quest for growth.
- Customer complaints show $600 million health startup uBiome has been surprising patients and insurers with bills for years
Source: Business Insider – lramsey@businessinsider.com (Lydia Ramsey)