PillPack manages prescription medications for its customers which include those with multiple chronic conditions — all by packaging, organizing as well as also delivering drugs. the idea boasts a “full-service” pharmacy, meaning its customer service team is actually available 24/7.
One person close to the deal said in which PillPack is actually committed to offering its service to customers, regardless of a buy-up.
The start-up has raised $118 million in funding via investors including CRV as well as also Menlo Ventures, as well as also the idea reached more than $100 million in revenue in 2017, the company says. In 2016 the idea was reported to be valued at $330 million.
Health experts say in which a PillPack buy-up makes sense for Walmart, especially in light of its talks with Humana. Both companies are looking for ways to serve vulnerable seniors with one or more medical conditions.
“A PillPack-like experience for customers would likely be a huge differentiator for any pharmacy,” said Bob Kocher, a health investor with Venrock. Kocher did not have any inside knowledge of the deal.
Kocher said the idea would likely also prove beneficial to Walmart as the idea looks to expand its online pharmacy business.
“Walmart is actually trying to offer a better e-commerce experience as a retailer, as well as on the health side with its pharmacies, as well as also the idea wouldn’t cost them in which much to buy a company like PillPack,” he added.
In 2016, PillPack hit the headlines after a contract dispute with Express Scripts, a pharmacy benefits manager, which could have lost the idea thousands of customers. The disagreement was patched up, in part due to pressure via PillPack’s users who took to social media to defend the service. At in which time, PillPack’s CEO TJ Parker disclosed in which Express Scripts accounts for about one-third of its revenue, creating the idea vitally important in which the relationship continue.