If Amazon.com, Inc. (NASDAQ:AMZN) is hoping to make a massive acquisition in the healthcare space, the company had better get a move on. Targets continue to be scooped up, including today’s massive announcement that a deal has been reached for Cigna to acquire Express Scripts.
The Street shares some thoughts on the healthcare acquisition market and what that means for Amazon.
Go figure, Amazon (AMZN – Get Report) is getting dominated in something: striking the truly splashy deal that finally gets the internet beast into healthcare. CVS Health (CVS – Get Report) now has Aetna. Walgreens Boots Alliance (WBA – Get Report) will eventually get AmerisourceBergen (ABC – Get Report) . And Thursday, Cigna (CI – Get Report) planted a flag in the changing healthcare landscape with a blockbuster $67 billion deal for Express Scripts (ESRX – Get Report) . The threat of Amazon’s entry into the space is not lost on the metrics of Cigna’s deal.
The Street points out that Cigna is paying nine times 2017 EBITDA for Express Scripts, and that it may be a proactive move against a future in which Amazon finally takes the healthcare plunge. Earlier this year, Amazon made headlines when a partnership was announced with Berkshire Hathaway and JP Morgan Chase to improve healthcare for the trio’s employees.
Beyond that, it’s unclear what Amazon’s next move will be when it comes to healthcare, but one thing is for certain: another entire industry is waiting with bated breath.
Amazon.com, Inc. shares were trading at $1,551.86 per share on Thursday afternoon, up $6.86 (+0.44%). Year-to-date, AMZN has gained 32.70%, versus a 2.71% rise in the benchmark S&P 500 index during the same period.