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Amazon Shakes Up Drugstore Business With Deal To Buy Online Pharmacy PillPack

TedTed
in Fund Discussions
FYI: (The Linkster uses Express Scripts)
Amazon says it's acquiring online pharmacy PillPack in a deal that could disrupt the U.S. drugstore business.
PillPack packages, organizes and delivers drugs. It sends consumers packages with the specific number of medications they're supposed to take at specific times.
Terms of the deal weren't disclosed. The companies expect the deal to close during the second half of the year.
Regards,
Ted
https://www.cnbc.com/2018/06/28/amazon-to-acquire-online-pharmacy-pillpack.html

Comments

  • msf
    It's not directly comparable with Express Scripts. As a pharmacy, I believe ES deals only with insurance plans; they won't fill a prescription unless it comes through a managed plan. They also serve as your PBM. Insurers treat them as a mail order pharmacy, allowing 90 day fills, often at a discount to the usual 3 x 30 day price.

    In contrast, PillPack provides "corner drugstore" services - you generally can get only 30 days filled at a time, and they sell retail - no insurance required.

    Of course they share a downside (or upside, depending on your perspective) with mail order pharmacies (including Express Scripts) - you get your drugs delivered in the mail. Takes longer than walking down to your pharmacy, but you don't have to walk. Relies on USPS, in which I'm losing faith on a daily basis.
  • Old_JoeOld_Joe
    "Relies on USPS, in which I'm losing faith on a daily basis."

    They seem to be doing a pretty decent job here in SF. Perhaps you have a local problem? They might to be short of employees in some areas as I notice a fair amount of "postal career" advertising.
  • msf
    You can submit an online request to hold mail. The USPS system will even email you an acknowledgement, and another when it is time to pick up your mail. But somehow or other, the same notices I get automatically don't seem to reach the people responsible for holding the mail. (Every time I try this.)

    So after submitting an electronic hold request that is ignored, I fill another request at the post office. Weeks later, when I come to pick up my mail, they hand me 2/3 of it. The next day, the other 1/3 is delivered to my mailbox (despite my request to hold for pickup).

    The carrier suggests these two dozen items must have been part of the mail that only just arrived after I went to the post office to pick up held mail. (I have images from USPS showing most of those items arriving weeks ago.)

    My post office lost its lease (literally), so it had to find a new location. They found one (a new building being constructed) and announced the planned move. Only then did someone notice that the planned location was in a different zip code from the one the post office served. They had to find another location, one in the correct zip code. If only they'd checked zip codes at the post office.

    Specifically with respect to mail order drugs, the carrier sometimes leaves them in the lobby, not in my secure mail box.

    Local problem? Maybe, though the post office here is blaming the USPS online system (not a local computer) for not communicating hold mail requests. Not knowing what zipcode you're standing in? Okay, maybe real estate transactions are handled strictly locally and not reviewed by anyone above a local branch manager. Still ...

  • Old_JoeOld_Joe
    Yeah, mail holds are always a trip. We always deal with the local PO- not on-line- it's only a couple of blocks away from the house. Still, never twice the same results. In our case the problem isn't the actual local PO- it's always at a large sorting center across town. It never hurts to talk to your route postman, if that's possible. They usually will go out of their way to be helpful. In the setup here our local route people work out of that big sorting center, not the local PO, and they know more about how things get screwed up than anybody.
  • msf
    Evans Street?
  • Old_JoeOld_Joe
    Actually they call it Napolean Street, but it's very close to Evans, so it's probably the same place. You seem to be pretty good on SF detail!
  • willmatt72
    I own CVS so I took a hit yesterday. Still at break even point, so I'm watching it closely.
  • BenWPBenWP
    @willmatt72: I am holding my CVS also. Every now and then I buy a M* five-star stock if the value thesis makes sense. I am at about break-even also, having lost the 7% gain of the last couple of weeks.
    I don’t think Amazon can replace the local pharmacy. We qualify for 90-day refills on scripts with our retiree Rx plan, but we don’t use the service any more. Generics cost multiples more than the 30-day supply at the store and the inconvenience of mail-order was a deal breaker. If you fail to refill on time, you can’t go to your local pharmacy for a couple of pills to carry you over. If your doc changes your med, it’s not on a 90-day schedule. AAA batteries, light bulbs, etc., are great products at Amazon Basics; prescription meds are not, as I see it.
    BTW, we don’t buy our meds at CVS because their prices are not competitive.
  • willmatt72
    @BenWP - I agree with your theory that Amazon can't replace the local pharmacy, especially with seniors, who are less apt to use the internet and purchase products, nevermind prescriptions. Also, I am of the mind that seniors enjoy visiting the local pharmacy while doing their errands. There is a sense of "hands-on" aspect with talking to the Pharmacist and asking questions about side effects, refills, etc. You really can't get that on the internet. Just my thoughts.
  • VintageFreakVintageFreak
    edited June 2018
    Coming soon - Amazon Prime Savings Accounts. What's worse, it's been on the backs of minimum paying jobs leaving Government holding the bag with food stamps.

    I'm not sure why all Trumpers here are not all over Amazon. For once, I am with Trump on Amazon.

    By the way, a small bunch of cherries used to be $4 at Whole Foods. Now they are $8. BUT if you have Amazon Prime, THEN its $4.

    Some day, if you want to get THIS pill, then you will need to also get THAT pill. Will be a hard pill to swallow.
  • Old_JoeOld_Joe
    edited June 2018
    "leaving Government holding the bag with food stamps"

    @VintageFreak- Not to worry. The Republicans are taking care of that problem by cutting back on the food stamps.
  • MikeMMikeM
    On a similiar note, I had a buy-limit order in for FDX, basically because I wanted to have something tied to the on-line shopping boom called Amazon. Low and behold Amazon said they would start using more 'local' delivery (implying not FDX). FDX quickly lowered to my buy point (and then fell an extra 3%). I guess I should be happy it came down to a value I thought was a good buy, but now I'm wondering. Oh, well, just play money:(

    Amazon is so huge, they control the fate of so much more then just themselves.
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