Amazon bought online pharmacy PillPack for $1 billion. PillPack operates in nearly all 50 states and makes about $100 million in revenue. The deal wiped $13 billion in value from traditional pharmacy stocks, with some dropping 10%.
Nearly all 50 states.
About $100 million.
About $13 billion.
Up to 10%.
July 6, 2018.
Amazon has made their big play into the healthcare space by purchasing Pillpack. Pillpack is an online pharmacy retailer operating in nearly all 50 states. So this is going to absolutely change the landscape and you and I as chiropractors definitely need to be aware of this. So what is the play? Pillpack generates about $100 million in revenue. But here is the rubber. As soon as Amazon announced this acquisition, it shaved $13 billion off of the pharmacy industry. CVS, Walgreens and many more stocks dropped up to 10% as soon as this was announced. That's why it's a billion dollar play. So you and I need to be diligent. This is going to mean people have access to medications easier than ever before with potentially next day, same day, or even within one hour delivery. Long term even, it is going to make the availability of these prescriptions much, much easier. That's Amazon's model. Ease of use. Getting products to consumers as quickly as possible. That ease of use is going to make things challenging in the conservative healthcare space. So you and I should aggressively get out there, tell our story regarding conservative care, talk about the process and make sure people understand that quite often surgery, medications and or injections are not the answ to their problem. Of course a slim percentage of the time that is necessary and by far the best treatment option. But for a majority of individuals, and as we've seen with the Pill and the opioid crisis, quite often these are short term gains with big long term repercussions. So Amazon has made their billion dollar play into the healthcare space and it is all about the pharmacy for them. So. So it is all important for us to stay diligent, to get our message out there and to make sure we are communicating proactively with our patients in our community because their ease of getting medications just got a lot, a lot easier.
