CEO Dan Arriola Discusses Amazon’s PillPack Acquisition

News | June 28, 2018

I really do believe that most CEOs are nothing more than empty suits and the recent acquisition of PillPack by Amazon proves my point. A week after appointing a CEO for its healthcare joint venture with Berkshire Hathaway & JP Morgan, Amazon acquires PillPack, an online pharmacy that lets users buy medication in pre-made doses, for under $1 Billion dollars. Walgreens could have easily made this acquisition for half the price a few years ago and made it harder for Amazon to enter the e-health market. Instead it invested in Theranos which was a huge loss for Walgreens investors & opened the door for Amazon to enter the market.

The PillPack acquisition will help Amazon scale their pharmacy business & integrate it with their new JV Healthcare company. The acquisition also forces the pharmacy companies to respond and my guess is they will make some overpriced transaction or merge.

Pharmacy stocks are down big after the Amazon announcement. These are all self inflicted wounds by CEOs focused on stock buy backs & tax inversion plans instead of competitors like Amazon who have slowly been sneaking up on their core business.

Dan Arriola
Chief Executive Officer
iD Commerce + Logistics

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