Amazon will pay $3.5 billion to acquire One Medical, accelerating the growth of the healthcare sector
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| Amazon will pay $3.5 billion to acquire One Medical, accelerating the growth of the healthcare sector |
Amazon.com decided to purchase primary care provider One Medical on Thursday for $3.49 billion (approximately Rs. 279 crore), thus expanding its virtual healthcare and first incorporating physical doctor's offices.
The all-cash transaction would bring together two relatively unimportant players as Amazon continues its years-long march into the US healthcare market in an effort to expand more quickly.
Prior to making its services available to other businesses under the Amazon Care brand, the online retailer launched virtual care visits for its own employees in Seattle in 2019. Additionally, it acquired PillPack in 2018, which served as the foundation for a later-launched website that compared prices and delivered prescriptions.
Neil Lindsay, senior vice president of Amazon Health Services, stated that he believes that healthcare is at the top of the list of experiences that require innovation.
The Seattle-based retailer has made it clear that it wants to enhance and expedite treatment. A breakthrough concept like how Amazon automated the role of cashiers in supermarkets has not yet materialized.
According to its website and most recent financial statements, Amazon is acquiring One Medical, a losing business with 767,000 members and enterprise clients like Airbnb and Alphabet's Google that provide its services as a perk to employees.
Contrarily, larger competitor Teladoc Health has twice as much revenue every quarter as One Medical and more than 54 million paying members in the United States. Shares of Teladoc, CVS Health Corp., Walgreens Boots Alliance Inc., and other pharmacy stores fell between 0.3 percent and 1.8 percent in response to news of the Amazon transaction.
According to Citi analyst Daniel Grosslight, the acquisition makes sense since "blending of virtual and in-person treatment is essential to both One Medical and Amazon Care's strategy."
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