Amazon is revealing more on how it intends to grow its nearly $800 million acquisition of digital pharmacy PillPack.com.
In September Amazon closed its $753 million deal for PillPack, which manages multiple prescription medications for customers by pre-sorting, packaging and delivering the drugs—all with a 24/7 pharmacy staff that customers can contact either online or via phone.
Now Amazon and PillPack are building a base for more national delivery of prescription drugs using ecommerce as a patient ordering and monitoring tool.
Amazon and PillPack are registering in more states and applying for more prescription wholesale licenses, according to a new research note from Jefferies Equity Research.
PillPack has distribution centers in Miami, Phoenix, Austin, Texas, and Manchester, New Hampshire. The Manchester hub has 49 state wholesale prescription licenses; the Miami hub has 45, Austin, 43 and Phoenix, 19.
But in the last two months PillPack’s Phoenix facility has been granted nine new state licenses and has three more pending, says Jefferies analyst Brian Tanquilut.
“Amazon has recently started to expand PillPack’s Arizona pharmacy distribution capabilities via obtaining licenses that enable it sell prescriptions into other states,” Jefferies says. “Following our checks with state boards of pharmacy this month, PillPack’s Arizona pharmacy has been granted nine new Rx licenses and has another three new applications pending.”
Amazon will continue to grow its prescription drug delivery business, but it may take more than just the acquisition of PillPack to get to a national level, Jefferies says.
“We expect AMZN will continue to pursue prescription licenses for PillPack’s Arizona pharmacy in all the remaining states over the next six months,” Tanquilut writes in a recent research note, using the stock symbol for Amazon. “That said, we believe Amazon will still have to acquire or build a few more mail pharmacies/grow capacity before being able to go live with a consumer pharmacy offering.”
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