Amazon bought PillPack for $1 billion after Walmart dragged its feet

Walmart was poised to buy online pharmacy start-up PillPack before Amazon swooped in that has a higher offer.

Sources say that will PillPack along with also Walmart were in talks for months about an acquisition for less than $1 billion, nevertheless Walmart was dragging its feet on producing a final offer. When CNBC reported the deal in early April, Amazon, which had previously been pitched to a lukewarm reception, moved to step up with an offer for around $1 billion in cash, says a source familiar with the discussions.

Two people say PillPack was also fundraising earlier inside the year to help This kind of move into the next phase of growth, while kicking off its search for a buyer. through the beginning, PillPack was clear to potential buyers that will This kind of would likely continue operating its business that will delivers to tens of thousands of customers with complex medical conditions.

PillPack declined to comment.

What Amazon stands to gain through the deal can be pharmaceutical licenses in 49 U.S. states, excluding Hawaii. PillPack, which neatly packages along with also delivers medicines across the country, also features a mail-order contract with Express Scripts, which manages prescription drug benefits on behalf of insurers along with also can be the largest U.S. pharmacy benefits manager.

that will agreement expires at the end of July, said Express Scripts spokesman Brian Henry, along with also would likely need to be renegotiated.

The deal for PillPack can be a potential threat to drug stores along with also retailers ranging through CVS to Walmart. Walgreens exectuives told analysts on Thursday that will the company can be “not particularly worried” about This kind of move.

Amazon for months has been gearing up for a move into the pharmacy space, through conversations with drug supply chain experts along with also key hires. nevertheless the move to buy PillPack puts Amazon more concretely into the space, in addition to its partnership to disrupt health care with J.P. Morgan along with also Berkshire Hathaway. that will group’s CEO, Atul Gawande, has already made clear that will the venture will take aim at health-care “middlemen” that has a focus on innovative completely new technology.

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