Amazon announces purchase of medicine e-commerce PillPack

The e-commerce giant Amazon announced this Thursday, 28, who will buy the PillPack online pharmacy, in a deal valued at $ $1 billion. With the acquisition of the company, Amazon flies in the face of large networks of pharmacies in the United States. The PillPack is a pharmacy that delivers assorted drugs for people suffering from chronic diseases. With the purchase, Amazon is trying to get a slice of the lucrative market for medicines by prescription in the United States, which is assessed at $ $450 billion, according to the consulting firm IQVIA. Although the PillPack expect your recipe exceeds just about $ $100 million this year, the large number of consumers online from Amazon, combined with your delivery infrastructure, can help the company climb your operation quickly. Amazon also may negotiate directly with the pharmaceutical industry, giving you the ability to offer the lowest prices, generic medicines. However, the company must face a fierce competition in this market, which is dominated by large chains of drugstores in the U.S., including networks such as CVS, Walgreen and Walmart. "The acquisition of PillPack by Amazon is a warning sign about what should become a major battle inside the pharmacy market," said the Director General of the GlobalData Retail consulting, Neil Saunders. Impact. The big drug chains have lost about $ $14 billion in market value yesterday after the news. Meanwhile, Amazon earned about $ $5.5 billion in market value. Shares of CVS closed in fall of 6.1%, while the roles of Walgreen fell 10%. The shares of companies such as McKesson, Cardinal Health and AmerisourceBergen also fell. The acquisition happens just a week after a joint venture between Amazon, Berkshire Hathaway and JP Morgan have appointed a Chief Executive Officer to lead the efforts of companies to reduce costs of health care for its 1 million employees.