Online pharmacy PillPack revenue projections amid Amazon deal

Amazon sent shockwaves through the healthcare industry when in June 2018 it acquired online pharmacy PillPack in a $750 million deal. At the time of the deal, the company was on track to make $299 million in annual revenue, according to a pitch deck reviewed by CNBC reporter Christina Farr.In 2019, that number was expected to double to $635 million. PillPack projected 2020 revenue of $1.2 billion, CNBC reported.Visit Business Insider's homepage for more stories.At the time that Amazon acquired PillPack, the pharmacy startup was making hundreds of millions in revenue, CNBC reported.In June 2018, Amazon bought online pharmacy startup PillPack for about $750 million. The deal sent shockwaves through the healthcare industry as Amazon's playbook for upending healthcare got clearer. At the time of the deal, the company was on track to make $299 million in annual revenue, according to a pitch deck reviewed by CNBC reporter Christina Farr. In 2019, that number was expected to reach $635 million, before doubling again to $1.2 billion in 2020.That'd still be a relatively small piece of the US's massive market prescription drug market — pharmacy chains like CVS and Walgreens, for instance, make hundreds of billions in revenue. PillPack mails prescriptions to people who take multiple medications, packaging them together based on dose. The company has pharmacies around the country that send out medication via mail. Read more: We tried PillPack, the pharmacy startup Amazon acquired for $1 billion, and we can see why it has big pharmacies terrifiedA representative for PillPack declined to comment on the report. So far, Amazon hasn't said much about what its plan is for PillPack. CNBC reported that a group of health insurers approached PillPack about providing its services to their customers, though no agreement has yet been reached. Former Aetna CEO Mark Bertolini told Business Insider's Rich Feloni in 2019, that from where he Bertolini sits, the deal had less to do with running a pharmacy and was more about finding a new way to get into people's homes.“Amazon bought PillPack, but it wasn't about the pills,” Bertolini said. “It was about getting into the home with Alexa where they can learn more about what we can do to provide health.”Read the full story of the Amazon-PillPack deal at CNBC. Read more:UBiome's board just tapped a former federal prosecutor to run an internal investigation after the FBI raided the $600 million Silicon Valley startupAmazon's playbook for upending healthcare just got a lot clearer — here's why it should terrify the pharmaceutical industry10 pharmacy startups that could be M&A targets after Amazon's acquisition of PillPackThe man who predicted that Amazon would buy Whole Foods now expects the tech giant will soon be the world's fastest-growing healthcare company