Boots shares plunge 10% following Amazon medicine service acquisition
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Shares in the parent company of pharmacy chain Boots, Walgreens Boots Alliance, have plummeted by 10% this morning following news that Amazon has acquired medicine delivery company Pillpack.
The American startup made $100m last year and will now see Amazon take over late next year, with the price of the business undisclosed.
Boots financial report out yesterday, saw a 1.7% fall in pharmaceutical sales in the period between March and May 2018. The retailer blamed lower prescription volume and government cuts for its financial woes.
TJ Parker, co-founder and CEO at Pillpack said: “Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the US who can benefit from a better pharmacy experience.”
Pillpack aims itself at customers who take multiple forms of medication, delivering drugs in pre-prepared packages with the correct dosages.
Worries at Amazon’s pharmaceutical rivals began when it won approval from some state regulators for drug distribution.
