Retail and pharmacy and drug distributor stocks are hit this week after Amazon’s announced acquisition of online pharmacy startup PillPack. PillPack delivers medications in pre-sorted dose packaging plus handles refills and renewals. Walgreens Boots (NASDAQ: WBA) was down about 10% at about $60, CVS Health Corporation (NYSE: CVS) was down about 10%, Cardinal Health (NYSE: CAH) was down about 7% and AmerisourceBergen Corporation (NYSE: ABC) was down about 5%.
The earnings impact to WBA from the Amazon’s acquisition of PillPack will be immaterial but Amazon will successfully integrate PillPack into its consumer offering in another 1-2 years will impact WBA’s long term earnings.
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