It appears that Jeff Bezos and the team at Amazon are at it again. This time Amazon is entering the healthcare arena with the acquisition of PillPack online pharmacy on Thursday. Amazon has merged with and acquired close to 90 companies since its start as an online bookstore in 1994; the purchase of PillPack denotes a dynamic industrial expansion by the retail giant.

PillPack is a Boston-based online pharmacy that fulfills drug prescriptions. This move instantly injects Amazon into the excessively profitable pharmaceutical industry. This play comes on the heels of Amazon’s Largest acquisitions; the purchase of the home security company Ring ($1 billion) in February 2018 and the acquisition of grocery giant Whole Foods ($14 billion) in 2017.

Acquiring PillPack signals that Amazon will undercut the traditional industry players, just as they have done in the retail sector. Providing a smooth shopping experience and rapid delivery has made Amazon one of the world’s fastest-growing companies. It is still not clear whether Amazon will allow PillPack to operate independently or if it will absorb the company into its own business model.

Shareholders in the major drugstore chains are disturbed by the implications of the purchase. The market reflected these sentiments with a 9.8 percent drop in Walgreens shares, and CVS Health stock fell 7.8 percent. Subsequently, Amazon stock rose by 2.1 percent during this same period.

PillPack founder, TJ Parker is the son of a pharmacist couple. The 32-year-old started the company while he was an engineering student at MIT. The $1 billion purchase price paid for PillPack is equivalent to Amazon’s second-biggest purchase, Ring. While all of the details of the deal have not been made public, it is apparent that Amazon is looking to play a major role in the healthcare industry in upcoming years.