Amazon sent drugstore stocks into the red with the announcement of the $1 billion PillPack acquisition. Some of the largest names in the space, including Walgreens Boots Alliance and Rite Aid dropped by 10% or more. With $118 million in funding raised, the exit would appear to be a big win for equity holders. It is also a fairly impressive multiple of revenue, which totaled ~$100 million through the end of 2017.
The real value to Amazon would appear to be the fact that the company is licensed to deliver drugs in all fifty states. With the proper infrastructure and tech-minded team at PillPack, Amazon will have the resources to apply scale. It will be interesting to see how the competitive landscape shifts in Amazon’s wake.
Click on the link to the article below for more details surrounding the transaction.