This article first appeared in Boston Business Journal, a sister publication of BostInno.
Walmart Inc. (NYSE: WMT) has been working for months on a deal to acquire Somerville-based startup PillPack Inc., according to a report from CNBC.
CNBC reported the price tag would be "under $1 billion," citing two sources familiar with the matter. If a deal came together at anywhere near the $1 billion price point, it would be a significant increase from PillPack's reported valuation of $330 million in September 2016.
Some have previously speculated that the medication delivery startup could be an acquisition target for Amazon, which is rumored to be considering an entrance into the drug-delivery market. CNBC is also reporting that Amazon looked into acquiring PillPack and held conversations with the startup at some point.
PillPack declined to comment on the reports.
Both Walmart and Amazon, which are already locked in a fierce battle over e-commerce market share, have recently made major moves into the world of healthcare. The Wall Street Journal reported last week that Walmart is considering an acquisition of insurer Humana Inc., which has a market valuation of nearly $39 million. Meanwhile, Amazon announced in January that it would partner with J.P. Morgan and Berkshire Hathaway to form an independent healthcare company for their employees.
Since its founding in 2013, PillPack has raised $118 million from investors including Accel Partners, Atlas Venture, CRV, Founder Collective, Menlo Ventures, and Sherpa Ventures.
As of November, the company had grown to 700 employees and nearly $100 million in annual revenue thanks to its online pharmacy business, centered around a special packaging and delivery method that makes it easier for people to manage multiple medications.
Also in November, PillPack co-founder and CEO TJ Parker declined to comment on a potential acquisition of the company, but said he would welcome the entrance of Amazon into the drug-delivery industry because it would help accelerate the shift to patient-focused business models.
