Shares of drugstore companies, including Walgreens Boots Alliance, CVS Health and Rite Aid, plunged June 28 after Amazon announced its intent to acquire online pharmacy startup PillPack, CNBC reports.
Here are five things to know:
1. Rite Aid shares dropped 11 percent, Walgreens tanked 9 percent, and CVS tumbled 8 percent on June 28 as news of the acquisition broke and fears escalated that the e-commerce giant would stomp the drugstore market.
2. All together, the three drugstore giants lost $12.8 billion in market value.
3. Walgreens CEO Stefano Pessina told analysts during a third-quarter earnings call June 28, "we aren't particularly worried" about Amazon's Pillpack deal, according to Forbes.
4. Several distributors and pharmacy benefit managers also saw shares fall after the acquisition announcement. Cardinal Health saw a dip of 8 percent, McKesson Corp. fell 8 percent, AmerisourceBergin dropped 6 percent, and Express Scripts Holdings decreased 3 percent as of early morning June 28.
5. Amazon plans to acquire PillPack, which delivers and manages medications for consumers who take multiple prescriptions. The deal is expected to close in the second half of 2018.