Loop Capital says Amazon’s PillPack deal is warning to pharmacy market
Amazon’s acquisition of on-line pharmacy PillPack is a “shot throughout the bow” for retail pharmacy chains, stated Anthony Chukumba, managing director of Loop Capital markets.
On Wednesday, a day earlier than Amazon introduced the deal, Loop Capital raised its value goal for Amazon to $1,900 from $1,800. Chukumba advised CNBC’s Energy Lunch on Thursday that PillPack units Amazon up for speedy growth within the pharmacy market.
“Amazon is ready to snap its fingers, and now has licenses to distribute medication in all 50 U.S. states,” he stated. “Lots of people thought it was going to take years to do.”
Though PillPack is comparatively small, bringing in about $100 million in income final 12 months, its relationships, licenses and know-how are priceless, Chukumba stated. Walmart was additionally bidding for the start-up, however Amazon got here in with a money provide of round $1 billion.
Massive pharmacy corporations tumbled on the information. Walgreens fell greater than 9 p.c, CVS dropped 6 p.c and Ceremony Help plunged 11 p.c.
Supply hyperlink – https://www.cnbc.com/2018/06/28/loop-capital-analyst-amazons-pillpack-deal-is-a-trojanhorse.html