According to Ankur Banerjee of Reuters, at the end of June Amazon is purchasing a small online company called PillPack. The cost of the transaction is estimated by Bloomberg to be about $1 billion. In the world of drug supply companies, a billion dollars is not a large number but PillPack supplies drugs and other services to people who take multiple medications. This is a growing market as treatment for numerous, complex, chronic conditions and PillPack expects to have a $100 million in revenue this year. The effect of Amazon getting into the drug supply business sent down prices of Pharmacy chains and drug wholesalers. It is likely they will bounce back up.

Amazon teamed up with Berkshire Hathaway and JP Morgan Chase to form a joint venture to significantly cut health care costs. The joint venture has named a Chief Executive. PillPack and other companies are expected to be part of this strategy.

Linking to dividend paying stocks, although PillPack is a small company, the question is the drug business rip for disruption of the type Amazon has been known for? It maybe however the cost of medicine has been and will continue to be an issue. The large companies do run on line pharmacies which offer incentives to fill and refill their drug needs at their pharmacies.  In the health care business everyone agrees health care costs are rising and it is the fault of the other person so not much changes.

There are more questions than answers, till the next time – to raising questions.