Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
Amazon bought PillPack for close to $1B and pharmaceutical companies are sh*tting their pants. The Hustle Fri, Jun 29 Brought to you by BlackBerry® KEY2… tickle those keys for up to 2 days. Amazon deals big pharma a quick $23.5B...
By: Wes Schlagenhauf
June 29, 2018
Amazon bought PillPack for close to $1B and pharmaceutical companies are sh*tting their pants.
Amazon deals big pharma a quick $23.5B blow with a $1B acquisition of PillPack
Amazon acquired a rapidly growing online pharmacy startup called PillPack for just shy of $1B, marking the start of the e-commerce giant’s long-anticipated takeover of the drug business.
After Amazon announced the purchase, investors across the country started flushing their drug stocks down the toilet -- knocking $23.5B worth of market value off of the biggest drug companies.
Big win for Amazon, bigger win for PillPack
Started in Boston in 2013, PillPack had raised less than $120m, making their $1B acquisition a huge financial victory.
The sale was also a big deal for Amazon, who has been publicly plotting their entry into the healthcare business since announcing their joint healthcare venture with Berkshire Hathaway and JPMorgan.
Amazon, which outbid Walmart for PillPack, now has direct prescription access to customers in 49 states (Hawaii coming soon).
A bitter pill to swallow
The industry response was immediate -- Rite Aid’s value plummeted 11.1%, Walgreens fell 9.9%, and CVS dropped 6.1%. Meanwhile, Amazon’s market cap rose $5.5B.
Amazon’s Hathaway-JPMorgan announcement also knocked $30B in market value off the competition, meaning all 3 companies are down more than 10% on the year.
The pharma industry better prescribe itself a solution, fast
Both Walgreens and CVS recently debuted same-day delivery programs to maintain an edge over the impending Amazocalypse, but it will be tough to stay competitive with Bezos’ nearly unlimited resources.
PillPack’s $100m in revenue is tiny compared to other pharma-giants. But Amazon wasn’t after the company’s revenue, it wanted the company’s 50 licenses (for each state) and innovative sorting service -- which will enable resource-rich Amazon to ramp up distribution immediately.
Amazon PillPacks a Punch
Redbox lands deal with Warner for same day release, because apparently DVDs still matter
Redbox’s space-age trunk-o-DVDs holds titles of new releases both prestigious and obscure: from your latest Oscar winner, to Zombeavers.
Unfortunately, the movies always hit the box a week after their home-video release.
But not anymore. TechCrunch reports that the DVD and Blu-ray kiosk operator announced a deal with Warner Bros. that will let it offer new releases on the same day as physical stores.
‘All outdated retail operations should be created equal’
To the digital-savvy, Blu-ray is akin to the LaserDisc: Many have heard of them, fewer have actually seen one in person.
It’s not just a little popular -- Redbox now operates almost 42k kiosks in the US, more locations than Starbucks (about 13k) and McDonald’s (about 14k) combined.
And studios see the potential
According to Variety, with Warner joining the team, Redbox now has same-day deals with almost all of the major studios, including Sony Entertainment, Universal Pictures, and Lionsgate (20th Century Fox).
Now, all they have left is Disney, who has not distributed with Redbox since 2012, amid an ongoing legal battle.
Big fizz energy: LaCroix maker’s shares nosedive 12% after SEC probe
The nation’s rockstar fizz-sation has taken a stage dive-left after shares of LaCroix’s maker, National Beverage Corp., fell more than 12% over the last few days.
It all started after National Beverage’s notorious chief exec and 74% owner of LaCroix, Nick Caporella, stuck his 81-year-old foot in his mouth… again.
The curmudgeonly billionaire’s antics are nothing new. Last year, Caporella made headlines when he went ape-sh*t in an American flag-themed press release titled, “FIZZ GROWS STRONGER!!,” defending LaCroix over alleged “perpetrators deliberately manipulating FIZZ value.”
But 5 months earlier, his passion caught the eyes of the SEC
In May 2017, Caporella released two press releases calling out “some shareholders” for allegedly profiting from shorting the company’s stock, which has shot up 500% in the last 5 years.
In the statements, Caporella boasted of 2 “proprietary techniques” that National Beverage used to boost growth -- VPO (velocity per outlet) and VPC (velocity per capita) -- bragging that their VPO was “flashing green numbers,” and that retailers were “amazed” by their methods.
Does anyone know what he’s talking about?
Neither did the SEC. So they asked him to explain
And, in what should not be surprising to anyone at this point, National Beverage gave them the ol’, “nah, we’re good, narcs.”
The company has famously refused to disclose the mystery ingredients behind what makes its fizz taste like a soft-spoken coconut or sheepish pamplemousse. And, according to the company’s chief accounting officer, their internal financial terminology is just as guarded.
According to The Washington Post, the SEC said it had “completed its review of the matter” last month. Results still bubbling…
With total ad transparency, Facebook and Twitter block trolls and frustrate brands
Overnight, Facebook and Twitter have made it possible for any user to view all of the ads run by a page, and are also rolling out tools to differentiate political ads from normal ones.
The changes are designed to increase transparency before the midterm elections, but they also cause big problems for small businesses that rely on social media for advertising.
How the sausage gets made
During the 2016 US presidential election, fraudulent Russian accounts served false ads to 10m Facebook users and at least 1.7m Twitter users, causing widespread anger about a lack of transparency.
So in nearly simultaneous announcements yesterday, both platforms rolled out new transparency solutions to prevent political manipulation.
Facebook added an “Info and Ads” section to show all current ads run by any company, and Twitter rolled out an “Ads Transparency Center” that shows all ads purchased across the platform.
But the changes impact more than just Russian bots
For most small (and many large) brands, Facebook advertising is important -- and requires trial and error to create a successful ad.
But now that all ads are visible to anyone, brands can copy each other’s best ads easily, which eliminates the competitive advantage for brands that worked hard to develop quality ads -- and makes FB advertising a lot more like the real world (and the real world is hard).
Since there’s so much data available about Facebook ad performance, the changes could lead to even more similarity between ads once marketers discover -- and shamelessly rip off -- the “best” ads.
The BlackBerry KEY2 keeps you power lunching for up to 2 days
The latest BlackBerry KEY2, packs a 3500 mAh battery -- twice as powerful as the smartphone you (probably) have in your pocket.
And, the battery is crazy smart: It learns from your daily charging habits and your calendar to automatically predict when you should hit the cable -- so you’re always topped off before your next meeting, flight, or concert.
Add a secure “locker” for sensitive documents and a “speed key” that can access up to 52 customizable keyboard shortcuts from any screen, and you have a smartphone that can do it all, better, faster, stronger longer.
But hey, don’t take our word for it. See the full spec breakdown at BlackBerry Mobile. Just make sure you have enough battery to get through the list -- this baby’s feature-loaded.
FINE-ISH PRINT: Trademarks, including but not limited to BLACKBERRY and EMBLEM Design, are the trademarks or registered trademarks of BlackBerry Limited, used under license.
Too Far Apart, Wilco. A deep alt-country cut off Wilco’s debut album (that band your annoying music buff friend keeps telling you to listen to).