Amazon buys PillPack, an online pharmacy, for just under $1B • Hacker News Board

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#21

Post by cabaalis » Thu, Jun 28, 2018, 3:35 PM UTC

simonsarris wrote: post #17

charleyma wrote: post #2

Meanwhile, CVS + Walgreens lost $6B in market cap on the news Amazon is moving directly into pharmacy space. It's crazy how competitive Wall Street views Amazon moving into a market; have there been examples of Amazon making a large purchase/move but completely failing? (sure there are, just not coming me off the top of my head)

All the time. They tried to make a move into retail registers to compete with Square, and failed. They shuttered Amazon register in 2015: https://bits.blogs.nytimes.com/2015/10/30/amazon-shutting-do... They tried to take on Etsy with Amazon Handmade which bombed Etsy stock, but Handmade has gone pretty much nowhere, except some re-branding this year. People just forget Amazon's failed ventures, even fairly high profi…

> They tried to take on Etsy with Amazon Handmade which bombed Etsy stock, but Handmade has gone pretty much nowhere, except some re-branding this year.

Is severely damaging another online vendor really a failure for Amazon? It seems to me at that level, revenue from a venture is not always the only measure of success.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#22

Post by protonimitate » Thu, Jun 28, 2018, 3:35 PM UTC

tombrossman wrote: post #18

This is interesting because Amazon isn't exactly known for supply chain integrity. Who here hasn't received fakes from Amazon? If you rely on a specific medication for your health, is Amazon a brand you trust to deliver it? How long until they start commingling pills and shipping random counterfeit/fake product to users? Hope it never happens but if they do with pharmaceuticals what they did with everything else they…

I understand the fear, but I don't think fake medicine is as big of an issue as fake market place items.

PillPack already has an established distribution network and prescription delivery licensing in 50 states. I don't know for certain, but I would assume that fake prescription medicine is a much bigger risk and would threaten the operation more than, say, fake batteries.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#23

Post by jdhn » Thu, Jun 28, 2018, 3:35 PM UTC

charleyma wrote: post #2

Meanwhile, CVS + Walgreens lost $6B in market cap on the news Amazon is moving directly into pharmacy space. It's crazy how competitive Wall Street views Amazon moving into a market; have there been examples of Amazon making a large purchase/move but completely failing? (sure there are, just not coming me off the top of my head)

CVS is down 8% right now, Walgreens is down 9%, and Rite Aid is down 10%. Investors are very nervous right now.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#24

Post by CamelCaseName » Thu, Jun 28, 2018, 3:35 PM UTC

toomuchtodo wrote: post #15

tehlike wrote: post #13

Earlier quoted context omitted.

A marketplace and something like pharmacy are completely different. They will still get their drugs from known producers, and on the generics side you'd have things like teva.

I can already get my pharmacy prescriptions from mail order fulfillment houses (up to 90 day supplies even depending on the prescription). What does Amazon offer on top of that? I’ve never not been within 15-20 minutes of a Walgreens or CVS when I needed a prescription immediately, so I don’t see what benefit Amazon brings to this. They’re (Amazon) not faster, I don’t care if they’re cheaper (insurance coverage), and…

Well, you're saving the 15-20 minute drive each way (assuming they're not on your way already) and the hassle of talking to someone online.

Remember, AMZN is entering the health insurance space as well, so that vertical integration can remove the "is this covered?" question that some with substandard insurance may have.

And with regards to supply chain issues, there's no reason for Amazon to open up their pharmacy service to third party sellers. Yes, they'll get a larger selection faster, but isn't that what this acquisition is for?

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#25

Post by mrguyorama » Thu, Jun 28, 2018, 3:35 PM UTC

UnpossibleJim wrote: post #14

throwaway5752 wrote: post #4

Earlier quoted context omitted.

[flagged]

How has this not been a thing since Reaganomics became standard policy for the last 6 administrations?

I think he is specifically calling out the "tweeting" portion. IE, yes, companies have been lobbying to block their competitors for a while, but it's a fairly recent trend that all you have to do now is tell Trump he's the best and he will put out a twitter hit campaign against your competitors

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#26

Post by el_benhameen » Thu, Jun 28, 2018, 3:36 PM UTC

tombrossman wrote: post #18

This is interesting because Amazon isn't exactly known for supply chain integrity. Who here hasn't received fakes from Amazon? If you rely on a specific medication for your health, is Amazon a brand you trust to deliver it? How long until they start commingling pills and shipping random counterfeit/fake product to users? Hope it never happens but if they do with pharmaceuticals what they did with everything else they…

Man, yeah. I’ve stopped buying anything food-related from Amazon, and I’m very hesitant to use it for anything that will come into contact with me or my family. If they integrate PillPack’s supply chain with their own, I would be extremely unlikely to even consider the service.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#27

Post by yohann305 » Thu, Jun 28, 2018, 3:37 PM UTC

i see a lot of comments here of people worrying about counterfeit pills distributed on Amazon. A counterfeit drug in USA is a ticket straight to jail, but a counterfeit mug or yoga mat isn't such a big deal. I wouldn't worry about it so much especially because it's not an open marketplace since Amazon will use Pillback as the distributor

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#28

Post by jklein11 » Thu, Jun 28, 2018, 3:37 PM UTC

toomuchtodo wrote: post #15

tehlike wrote: post #13

Earlier quoted context omitted.

A marketplace and something like pharmacy are completely different. They will still get their drugs from known producers, and on the generics side you'd have things like teva.

I can already get my pharmacy prescriptions from mail order fulfillment houses (up to 90 day supplies even depending on the prescription). What does Amazon offer on top of that? I’ve never not been within 15-20 minutes of a Walgreens or CVS when I needed a prescription immediately, so I don’t see what benefit Amazon brings to this. They’re (Amazon) not faster, I don’t care if they’re cheaper (insurance coverage), and…

To your point, you aren't Amazon's customer, the insurance companies are. They might be able to use their size as leverage for better prices from manufacturers and compensation from insurance companies. There may also be synergies with Amazon's business lines because volume is a big factor in fulfillment costs. All of these factors might give them an edge over other online or brick and mortar pharmacies.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#29

Post by ProAm » Thu, Jun 28, 2018, 3:37 PM UTC

charleyma wrote: post #2

Meanwhile, CVS + Walgreens lost $6B in market cap on the news Amazon is moving directly into pharmacy space. It's crazy how competitive Wall Street views Amazon moving into a market; have there been examples of Amazon making a large purchase/move but completely failing? (sure there are, just not coming me off the top of my head)

No different than when Garmin's stock collapsed when Google announced free Maps/Navigation [1][2]. It's just the market reacting to supply and demand.

[1] http://www.macnn.com/articles/09/10/28/google.maps.helps.gps...

[2] http://www.businessinsider.com/googles-free-gps-service-crus...

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#30

Post by skybrian » Thu, Jun 28, 2018, 3:37 PM UTC

tombrossman wrote: post #18

This is interesting because Amazon isn't exactly known for supply chain integrity. Who here hasn't received fakes from Amazon? If you rely on a specific medication for your health, is Amazon a brand you trust to deliver it? How long until they start commingling pills and shipping random counterfeit/fake product to users? Hope it never happens but if they do with pharmaceuticals what they did with everything else they…

Just as a data point, I don't believe I've gotten a fake from Amazon.