Financial terms of the deal were not disclosed, but sources cited by TechCrunch peg the price at just under $1 billion.
Privately-held PillPack caters to patients who take multiple daily prescriptions and delivers medications in pre-sorted dose packaging and coordinates refills and renewals. The startup has raised upwards of $120 million in funding from backers including TechStars, Menlo Ventures, and Accel. Walmart was also said to be talking with Medicare insurer Humana around that same time.
An aging population means we'll see an increase in health concerns and chronic conditions like heart disease, neurodegenerative diseases, and cancer that can be costly to manage.
"Together with Amazon, we are eager to continue working with partners across the health care industry to help people throughout the United States who can benefit from a better pharmacy experience", PillPack chief executive TJ Parker said in a statement.
Parker grew up behind the counter of his father's drug store in Concord, N.H., and has spoken of his exasperation seeing customers resort to spreadsheets to figure out how to schedule and sort their medications.
The move comes amid speculation that Amazon was planning to get into the pharmacy or drug-distribution business.
The acquisition is expected to close in the second half of this year. In 2016, the pharmacy benefits company Express Scripts Holding Co. threatened to drop PillPack from its list of approved vendors because of its focus on delivery over storefront retail.
The damage also spread through the pharmacy supply chain, with drug wholesalers seeing deep losses.