Amazon is buying online pharmacy PillPack — a move that could disrupt the drug store business.
PillPack has pharmacy licenses in all 50 states. The company delivers medications to customers in pre-sorted doses designed to make it easier for people to take multiple medications a day.
Amazon (AMZN) was widely expected to move into the pharmacy business.
And Amazon CEO Jeff Bezos, the world’s richest man, is creating a health care company along with JPMorgan Chase (JPM) and Warren Buffett’s Berkshire Hathaway (BRKA).
The PillPack deal is already scaring investors in the top two drug store chains.
CVS (CVS) fell 9% in early trading. Walgreens Boots Alliance (WBA), the newest Dow component, plunged more than 10%. Walgreens was already trading lower after reporting a drop in same-store sales at its US pharmacies.
Related: Amazon is already trying to disrupt