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PillPack, Inc. is an American online
pharmacy Pharmacy is the science and practice of discovering, producing, preparing, dispensing, reviewing and monitoring medications, aiming to ensure the safe, effective, and affordable use of medication, medicines. It is a miscellaneous science as it ...
which is a subsidiary of
Amazon Amazon most often refers to: * Amazon River, in South America * Amazon rainforest, a rainforest covering most of the Amazon basin * Amazon (company), an American multinational technology company * Amazons, a tribe of female warriors in Greek myth ...
. It is based in
Manchester, New Hampshire Manchester is the List of municipalities in New Hampshire, most populous city in the U.S. state of New Hampshire. Located on the banks of the Merrimack River, it had a population of 115,644 at the 2020 United States census, 2020 census. Manches ...
, United States. The company was founded in 2013.


History

The company was founded in 2013 by TJ Parker and Elliot Cohen. By 2014 the
IDEO IDEO () is a design firm, design and consulting firm with offices in the U.S., England, and China. It was founded in Palo Alto, California, in 1991. The company's 500 staff uses a design thinking approach to design products, services, environmen ...
incubated company was licensed in 31 states and shipping medication in dosage packets with
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handling the packaging process. Software development and management were based in
Somerville, Massachusetts Somerville ( ) is a city located directly to the northwest of Boston, and north of Cambridge, Massachusetts, Cambridge, in Middlesex County, Massachusetts, United States. As of the 2020 United States census, the city had a total population of 81, ...
, with pharmacy fulfillment operations at the Millyard complex in
Manchester, New Hampshire Manchester is the List of municipalities in New Hampshire, most populous city in the U.S. state of New Hampshire. Located on the banks of the Merrimack River, it had a population of 115,644 at the 2020 United States census, 2020 census. Manches ...
, former site of the
Amoskeag Manufacturing Company The Amoskeag Manufacturing Company was a textile industry, textile manufacturer which founded Manchester, New Hampshire, United States. From modest beginnings it grew throughout the 19th century into the largest cotton textile plant in the world ...
. In April 2016,
Express Scripts Express Scripts Holding Company is a pharmacy benefit management (PBM) organization. In 2017 it was the 22nd-largest company in the United States by total revenue as well as the largest pharmacy benefit management (PBM) organization in the Unit ...
announced it would remove PillPack from its
pharmacy benefit manager In the United States, a pharmacy benefit manager (PBM) is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D, Medicare Part D plans, the Federal Employees Health Ben ...
network at the end of the month, saying the company had misrepresented itself as a physical pharmacy rather than mail-order. PillPack alleged that Express Scripts was simply trying to give an anti-competitive advantage to its own mail-order pharmacy. PillPack launched the website FixPharmacy.com and began a publicity campaign, urging affected customers (which represented about a third of its business) to complain to Express Scripts. Express Scripts agreed to allow PillPack to remain in its network before the suspension took effect. In June 2018, Amazon.com acquired the company for a reported . In November 2019, the company changed their branding from "PillPack, an Amazon company" to "PillPack by Amazon Pharmacy". In June 2019, the federal district court for Rhode Island ruled that former CVS Caremark head John Levin violated his 18-month
non-compete agreement In contract law, a non-compete clause (often NCC), restrictive covenant, or covenant not to compete (CNC), is a clause under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition again ...
by working at PillPack in a position responsible for insurance payment negotiations. In June 2020, PillPack announced plans to build a customer service
call center A call centre (English in the Commonwealth of Nations, Commonwealth spelling) or call center (American English, American spelling; American and British English spelling differences#-re, -er, see spelling differences) is a managed capability th ...
in
Meridian, Idaho Meridian is a city located in Ada County, Idaho, Ada County, Idaho, United States. The population was 117,635 at the 2020 United States census, 2020 census, making it the List of cities in Idaho, 2nd most populous city in the county and Idaho a ...
, to expand upon its existing call center in
Salt Lake City, Utah Salt Lake City, often shortened to Salt Lake or SLC, is the List of capitals in the United States, capital and List of cities and towns in Utah, most populous city of the U.S. state of Utah. It is the county seat of Salt Lake County, Utah, Salt ...
. In December 2021, Parker and Cohen were removed from Amazon Pharmacy management. Parker was replaced in the reporting chain by Amazon Alexa VP John Love, and Neil Lindsay, who had previously overseen Amazon Prime, was put in charge of both Amazon Pharmacy and Amazon Care. Axios described the two as being "demoted to consultants" but Amazon said it was not a demotion, and that they remain Amazon employees. In May 2022, PillPack agreed to pay $5.79 million to the federal government and some states settle a Department of Justice lawsuit. The complaint alleged that from April 2014 to November 2019, the company sent a larger amount of insulin to Medicare and
Medicaid Medicaid is a government program in the United States that provides health insurance for adults and children with limited income and resources. The program is partially funded and primarily managed by U.S. state, state governments, which also h ...
patients than allowed, then falsely reported the remaining supply those patients had in order to avoid penalties.


References

{{Amazon Amazon (company) acquisitions Pharmacies of the United States 2013 establishments in the United States Retail companies established in 2013 2018 mergers and acquisitions