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Drugstore stocks tumble on report Amazon getting pharmacy licenses in multiple states

    • The St. Louis Post-Dispatch reported that Amazon received approval for wholesale pharmacy licenses in at least 12 states after reviewing public records.
    • Shares of Walgreens, Rite Aid and CVS Health all fell sharply after the report.

    Shares of drugstore companies tumbled midday Thursday on a report that Amazon is getting approval to distribute drugs in multiple states.

    The St. Louis Post-Dispatch reported that Amazon received approval for wholesale pharmacy licenses in at least 12 states after reviewing public records. These licenses could be used for distributing other items, such as medical supplies, and do not necessarily mean that Amazon is getting into the pharmacy business.

    Shares of Walgreens Boots Alliance, Rite Aid and CVS Health fell3.2 percent, 6.2 percent and 2.9 percent, respectively, as investors worried Amazon may disrupt the drugstore market.

    Express Scripts stock, a pharmacy benefits management company, also fell 3.7 percent.

    CNBC reported on Oct. 6 that Amazon will decide before Thanksgiving whether to move into selling prescription drugs online, according to a source.

    An Amazon spokesperson said by email that the company doesn't "comment on rumors or speculation."

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