Amazon has entered into an agreement to acquire pharmaceutical startup PillPack for $1 billion, beating out Walmart for the bid.

Walmart had been in talks to acquire the company for a lower amount, but had been reluctant to finalize the deal, according to CNBC’s sources. The acquisition will give Amazon pharmaceutical licenses in 49 states – potentially a heavy blow to drugstores and other market entrants.

Reporting from CNBC’s Christina Farr available here.