Amazon’s tributary into the pharma market

Yep. Another Amazon story. We promise to dial it back a notch going forward. Unless we don’t. Way back in April it was rumored (and reported by InsightCity) that Wal-Mart would buy the online pharmacy PillPack. Well, that didn’t happen, but don’t cry for PillPack because according to a press release, Amazon just did. While you can’t cry for PillPack, if you watch the World Cup, you can cry for Germany. FYI, PillPack delivers medications in pre-sorted dose packaging for people taking multiple prescriptions. Want to know why we keep harping on Amazon (and Apple and Wal-Mart)? Witness the market power they have via an almost immediate downgrade of Walgreens after the PillPack announcement. In fact, “Walgreens, CVS and Rite-Aid lose $11 billion” in market cap after the announcement. The question now becomes, what will Wal-Mart do?

It’s good to be the king (of retail)

You can’t turn on the telly (shout out to the UK), open an industry email (like this one), or read Süddeutsche Zeitung (wir hören Sie, Deutschland) without someone talking about Wal-Mart, Amazon, or Apple doing something with healthcare. And, this is no different. Sorry. That said, turns out Wal-Mart doesn’t want to be left in the healthcare dust. This week it was reported they are in talks to buy PillPack, an online pharmacy and Humana. Buying Humana comes with a built-in market for Wal-Mart’s pharmacy businesses. If you remember, Aetna once courted Humana, but the US squashed the deal on Medicare monopoly concerns. Wal-Mart has a huge brand, lots of customers, a growing home-delivery service, and a market cap north of $250B so hold on. Big things are coming. Because it’s good to be the king.