Amazon Loses PillPack Founders Four Years After Acquisition

With Amazon Pharmacy, Prime customers in the United States can get their prescriptions delivered to their home for free.

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Two Amazon executives who played a formative role in the retail giant’s push into health care are leaving.

TJ Parker and Elliot Cohen, the co-founders of prescription drug startup PillPack, are leaving Amazon at the end of this month, according to a post on Parker’s LinkedIn profile. Amazon bought PillPack in 2018 for around $750 million.

Following the acquisition, Parker and Cohen helped lead the launch of Amazon Pharmacy, the company’s online pharmacy for prescription drug delivery in the U.S. Both Parker and Cohen served as vice presidents of pharmacy until recently, when they were moved to consulting roles, Axios reported. .

“I am writing to inform you that Elliot and I will be leaving PillPack and Amazon at the end of the month,” Parker wrote. “Of all, it is the people we met along the way and who accompanied us on this journey that we will remember most fondly, and will miss them all.”

Parker and Cohen co-founded PillPack in 2013. Parker, whose father was a pharmacist, attended pharmacy school in Boston. He met Cohen, who was in business school at MIT. PillPack began serving customers in 2014, and Parker’s father joined as one of the company’s first pharmacists.

Amazon has accelerated its push into health care in recent years, though not all of its efforts have been successful. The drugstore business struggled to gain traction, with Amazon recently announcing it was shutting down its Amazon Care telehealth service after discovering it wasn’t a “complete enough offering” for customers.

Early last year, a joint venture Amazon had formed with Berkshire Hathaway and JPMorgan Chase to lower health care costs was dissolved. The entity was called Haven, and its expected initial entry into the health care market had sent provider shares tumbling.

Still, Amazon is investing significant capital and resources in the space. In July, Amazon said it would acquire One Medical for $3.9 billion, adding a network of boutique primary care clinics. Amazon also operates a consumer diagnostics company.

Amazon had reshuffled its healthcare leadership before Parker and Cohen left. Last December, CNBC reported that the company elevated its former chief executive, Neil Lindsay, to oversee its health efforts. John Love, who previously served as vice president at Amazon’s Alexa division, was named vice president of Pharmacy and PillPack in January.

In a memo to the health services team on Monday, Lindsay called Parker and Cohen’s departure “bittersweet” and thanked PillPack’s founders for helping develop the strategy “to help improve the customer’s healthcare experience.” .

“Driven by his vision and customer obsession, PillPack’s business and capabilities became the foundation of Amazon Pharmacy,” Lindsay wrote.

CLOCK: Amazon launches online pharmacy in the United States

Amazon Loses PillPack Founders Four Years After Acquisition

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