Two founders of Amazon’s PillPack to leave as healthcare business suffers

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Pinwan, September 20, according to Bloomberg , in order to enter the health care industry, Amazon has previously acquired prescription drug startup PillPack, but recently the two founders of PillPack are leaving. The founders of PillPack, TJ Parker and Elliot Cohen, told employees they would be leaving Amazon at the end of the month.

In 2018, Amazon acquired PillPack for about $753 million in an all-cash acquisition. Two years later, Amazon launched Pharmacy, which deeply integrated PillPack with retail websites. The Pharmacy service used the physical and digital infrastructure provided by PillPack.

PillPack categorizes medications into easily dispensed doses, a service that appeals to patients taking multiple medications for chronic diseases. Analysts believe that Amazon is not pushing hard in the huge market of prescription drugs. According to JD Power’s estimates, Amazon only accounts for 1.8% of the US mail-order drug sales market.

Amazon’s healthcare business has suffered setbacks in recent times. A few weeks ago, Amazon announced that it would shut down Amazon Care healthcare by the end of the year. At about the same time, however, Amazon acquired 1LifeHealthcare, a company dedicated to offering healthcare memberships.

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