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

  • joy
  • 2022-09-20 11:49:21
  • 152 read
  in order to enter the health care industry, Amazon has previously acquired prescription drug startup PillPack,...

  in order to enter the health care industry, Amazon has previously acquired prescription drug startup PillPack, but recently the two founders of PillPack have left in turmoil.

  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.

  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.

  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.

  Parker and Cohen will spend time with their families, and then will follow other health care and consumer-targeted businesses, help them get started, invest in them, and provide consulting services.


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