-====Amazon (AMZN) to acquire PillPack

PillPack is a pharmacy designed to provide the best possible customer experience in the U.S. for people who take multiple daily prescriptions. PillPack delivers medications in pre-sorted dose packaging, coordinates refills and renewals, and makes sure shipments are sent on time. The parties expect to close the transaction during the second half of 2018.

• McKesson (MCK) hit a 52-week low despite guiding Q1 EPS above consensus and reaffirming FY19 EPS guidance this morning.
• Drug distributor peers: Cardinal Health (CAH -8%) and AmerisourceBergen (ABC -7%) are also getting hit hard
• Drug stores: RAD-11.62% CVS-9.26% WBA-9.34%
• Insurers: CI-3.41% AET-2.68% ANTM-2.22% UNH-2.01% HUM-1.52% WCG-1.02% CNC-0.91% MOH-0.91%

•  A small but significant step into the U.S. healthcare sector, sending shares of drug distributors and retailers lower.
• CVS Health (CVS 64.40, -5.65, -8.1%), Walgreens Boots Alliance (WBA 60.10, -6.16, -9.3%), and other drug distributors have sold off sharply after Amazon (AMZN 1664.00, +3.49, +0.2%) unveiled a deal to acquire online pharmacy PillPack.
• Shares of drug wholesalers McKesson Corp (MCK.N), Cardinal Health (CAH.N) and AmerisourceBergen (ABC.N) also fell sharply. Pharmacy benefit manager Express Scripts (ESRX.O) was also lower.
• The purchase follows the announcement in January that Amazon, Berkshire Hathaway Inc (BRKa.N) and JPMorgan Chase & Co (JPM) were forming a joint venture to tackle rising U.S. healthcare costs. The three companies said they would use big-data analysis and other high-tech tools to improve care and cut waste.
• PillPack, which also serves patients with multiple chronic conditions, is authorized to deliver in 49 states.
• The company had attracted interest from Walmart Inc (WMT.N), which was looking to buy it for under $1 billion, CNBC had reported in April. The PillPack deal is expected to close during the second half of 2018.