Amazon has announced it is buying US automated pharmacy company PillPack in a deal which is reportedly worth around £760 million ($1 billion).

The acquisition is subject to regulatory approvals, though both parties expect the deal to go through towards the latter half of 2018.

The announcement confirms suspicions that Amazon is looking to break into the healthcare market.

Jeff Wilke, Amazon CEO worldwide consumer, said: “PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology.

“PillPack is meaningfully improving its customers’ lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier. We’re excited to see what we can do together on behalf of customers over time.”

Founded in 2013, PillPack is aimed at people who take multiple daily prescriptions as it provides pre-sorted dose packaging as well as home delivery through its PharmacyOS system.

The company, which is used in every US state apart from Hawaii, liaises directly with a patient’s doctor to process repeat prescriptions.

It also allows customers to chat with a pharmacist or update their settings through the PillPack app.

And through an online dashboard, patients can check bills, track shipments and review their medication list.

According to Tech Crunch, sources have claimed the deal is worth around £760 million ($1 billion) and that PillPack had previously been in talks with supermarket firm Walmart.

TJ Parker, co-founder and CEO of PillPack, said: “PillPack makes it simple for any customer to take the right medication at the right time, and feel healthier.

“Together with Amazon, we are eager to continue working with partners across the healthcare industry to help people throughout the US who can benefit from a better pharmacy experience.”

The purchase of PillPack is not Amazon’s first dip into the healthcare market. In February 2018, it was reported the firm was teaming up with Berkshire Hathaway and US banking giant JP Morgan Chase to launch a healthcare business for their own employees.