Walmart is in talks to acquire the PillPack drug delivery service for “less than $ 1 billion,” reports CNBC. CNBC sources said the case was not yet finalized, but discussions had been going on for months and Amazon was also a potential contender for the start-up, which delivers drugs to tens of thousands of customers in the United States.

Launched in 2013, PillPack raised $ 118 million in financing from investors, including Accel Partners, Atlas Venture and CRV. PillPack does not just fill prescriptions. It also helps patients manage their medication by sorting tablets into individual doses, automatically delivering refills to homes, and offering 24/7 customer service, which is a major selling point for old people. Last year, PillPack also unveiled the prescription management software called PharmacyOS that he described as “the first backend pharmacy system designed specifically for clients with complex drug regimes.”

Last November, co-founder and CEO TJ Parker, who trained as a pharmacist, said PillPack would make more than $ 100 million in revenue in 2017. His loyal clientele helped PillPack wins a public relations battle in 2016 with Express Scripts, the country’s largest pharmacy benefits manager. After Express Scripts broke off its partnership with PillPack, claiming that the company was to be licensed as a mail order operation instead of a retail pharmacy, PillPack stated that this was the only way it was going to be sold. force to stop delivering to a third of its customers. She also accused Express Scripts, who runs her own home delivery service, of trying to block competition. Customer outcry, driven by a PillPack campaign, forced Express Scripts to back down.

Both Walmart and PillPack declined to comment on a possible acquisition of CNBC.

It is said that Amazon is working on its own prescription delivery service, after launching a line of over-the-counter health products such as allergy treatments. If its pharmaceutical business comes to fruition, it means that Amazon will be competing even more closely with Walmart, which will put increasing pressure on the big-box chain.

Walmart is also in talks to acquire Humana’s health insurance.

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