Amazon to buy PillPack, launch itself into the pharmaceutical business

Amazon is one of the biggest companies around and it sells just about anything an individual could need. This includes electronics, books, games, clothing, food, and sports equipment. The online shopping retailer has only continued to expand and grow in revenue and popularity. There are multiple reports that Amazon has made another big move by purchasing an online prescription company called PillPack.

Amazon expanding market

Amazon has entered into the healthcare industry with an expensive market estimated at "$400 billion." The giant has made the decision to buy PillPack to make its mark in the pharmaceutical business. Many US individuals and families are on some sort of medication and there is a lot of money to be made. The giant wants to dive into the business and make more of an income for itself. Addressing the money that can be made in the pharmaceutical business, CNBC reports that "More than 4 billion prescriptions are ordered in the U.S. every year.[sic]"

PillPack is excited to work together with Amazon as TJ Parker, the CEO of PIllPack, said in a statement reported by NBC News: "Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout U.S.

who can benefit from a better pharmacy experience.[sic]" NBC News confirms that the deal with PillPack is "expected to close later this year."

Amazon owns Whole Foods, an organic supermarket chain that could play a role in their recent acquisition of PillPack. NBC News reports the possibility of this, as it states that "Amazons $13.7 billion purchase of the natural and organic supermarket chain Whole Foods in June last year could provide the real estate Amazon may need to expand its pharmacy interests." It's fair to say that the sky is the limit for the company moving forward, as Whole Foods can be used to boost its pharmaceutical business.

Hurting other suppliers

With this decision, however, comes its pros and cons.

While it is very good for Amazon itself, it will surely hurt other companies that sell medications, such as Rite-Aid, CVS, and Walgreens. The ability to shop online and the advancement of technology have certainly hurt other retail stores, as fewer people are going out and shopping for products.

An article by CNBC already points out the demise of other stores due to Amazon's recent choice to buy the online pharmacy as "Walgreens, CVS, and Rite-Aid lose $11 billion in value." Shares for the companies have also staggeringly fallen as a result.