EconomyHigh StreetM&AOnline & Digital

Boots shares plunge 10% following Amazon medicine service acquisition

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.

Back to top button

Please disable your ad-blocker to continue

Ads are the primary way in which publishers generate the revenue needed to pay their staff. If we can't serve ads, we can't pay journalists to write the news.