Amazon.com, Inc. AMZN announced its acquisition of PillPack, an online pharmacy previously targeted by Walmart Inc WMT. The transaction is seen to advance Amazon’s health care campaign to the detriment of the vast and diverse sector. What It Means For Amazon Amazon had already made strides in health care before pursuing PillPack. It sold medtech domestically, delivered drugs internationally, and teamed up with Berkshire Hathaway Inc. (NYSE: BRK-A)(NYSE: BRK-B) and JP Morgan Chase & Co. JPM to develop a health venture supporting employees. But Thursday’s move “opens another major category for Amazon,” according to JMP Securities analyst Ronald Josey. “As pharma moves online, PillPack gives Amazon a head start,” Josey wrote. “[...] While online pharmaceutical sales are nascent, we think there is significant demand.” PillPack will help Amazon pervade the $350 billion to $400 billion domestic pharmacy market and $2 trillion global market by expanding the firm’s pharmacy licenses from 12 states to 49 states. At the same time, Amazon’s infrastructure can enhance PillPack’s ordering, delivery, scale and user experience. “Over time, we would expect PillPack to be included as part of Prime, benefiting from Amazon’s logistics expertise and leveraging its 70-plus million subscribers in the U.S., among other benefits,” Josey wrote. By D.A. Davidson estimates, a successful integration could drive forecasted compound annual sales growth 64 basis points and dilute long-term margin forecasts for earnings before interest, tax, depreciation and amortization (EBITDA) 68 points. And that’s keeping the opportunity online. “We see the potential for the company to add pharmacies to its Whole Foods physical stores, which would enable it to further exploit the market opportunity,” D.A. Davidson analyst Tom Forte wrote. SourceFor the present time consolidation seems possible. Otherwise it's better to wait for more clear signals. $AMZN, Amazon.com, Inc. / D