Online pharmacy start-up PillPack is in talks to be acquired by Walmart for under $1 billion, according to two sources familiar with the matter.
PillPack’s focus on making it easier for customers to order and fulfill medications is an attractive proposition for Walmart and other e-commerce companies that are looking to enhance their health care offerings. The talks come amid reports of early acquisition talks between Walmart and health insurance giant Humana, which would be a much larger deal.
The sources cautioned that the PillPack deal is not yet finalized and could still fall apart, and that Walmart has considered buying a number of start-ups. Still, the sources said discussions between the two about a sale have been happening for months.
PillPack manages prescription medications for its customers which include those with multiple chronic conditions — all by packaging, organizing and delivering drugs. It boasts a “full-service” pharmacy, meaning its customer service team is available 24/7.
One person close to the deal said that PillPack is committed to offering its service to customers, regardless of a buy-up.
The start-up has raised $118 million in funding from investors including CRV and Menlo Ventures, and it reached more than $100 million in revenue in 2017, the company says. In 2016 it was reported to be valued at $330 million.
Health experts say that a PillPack buy-up makes sense for Walmart, especially in light of its talks with Humana. Both companies are looking for ways to serve vulnerable seniors with one or more medical conditions….