Pharmacy stocks are getting slammed after Amazon buys PillPack | Tech News
- Brendan McDermid/Reuters
- Amazon is buying online pharmacy PillPack, and the main pharmacy stocks are getting whacked.
- Walgreens had an encouraging quarter, which included a dividend hike and share buyback program, and it’s still getting crushed.
- Watch Wallgreens, CVS, and Rite Aid trade here.
Here’s the scoreboard:
Rite Aid: -3.03%
Wallgreens Boots Alliance: -9.64%
PillPack is geared towards patients who take multiple daily prescriptions. “PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier,” its cofounder and CEO TJ Parker said in a press release.
Jeff Wilke, CEO of Amazon’s World Wide Consumer unit, added: “PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology.”
Walgreens shareholders seem particularly nervous about Amazon’s advances into the pharmaceutical space. Just hours before Amazon announced it’s buying PillPack, Walgreens beat analyst estimates on third-quarter revenue and earnings. The company also hiked its dividend and announced a $10 billion share buyback plan.