Walmart — which is already in early acquisition talks with insurer Humana — is reportedly looking to buy online pharmacy startup PillPack for less than $1 billion, two sources familiar with the matter told CNBC.
Here are six things to know.
1. PillPack markets itself as a "full-service" pharmacy with a 24/7 customer service team. It manages prescription medications for its customers by packaging, organizing and delivering them.
2. The sources emphasized the PillPack sale is not finalized, and Walmart has evaluated a number of other startups to potentially purchase. However, Walmart and PillPack have reportedly been discussing a deal for months.
3. A Walmart spokesperson told CNBC, "We are often asked to speculate on possible acquisitions and we simply don't comment on those types of questions." PillPack declined to comment.
4. Amazon also reportedly vetted the startup, according to the two sources.
5. Experts told CNBC a PillPack buy-up is a logical step for Walmart, particularly as it considers snagging Humana.
"A PillPack-like experience for customers would be a huge differentiator for any pharmacy," Bob Kocher, MD, a health investor with Venrock, said. "Walmart is trying to offer a better e-commerce experience as a retailer, as well as on the health side with its pharmacies, and it wouldn't cost them that much to buy a company like PillPack."
6. PillPack raised $118 million in funding and reported revenues of more than $100 million in 2017. The company was valued at $330 million in 2016.
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