Shares of insurer Express Scripts and other health-care related stocks slid Tuesday after Amazon, J.P. Morgan and Berkshire Hathaway announced a partnership to improve employee health.
The three companies, led by Jeff Bezos, Jamie Dimon and Warren Buffett, plan to develop ways to improve the health of their employees, with the goal of improving customer satisfaction and reducing costs.
"The three companies, which bring their scale and complementary expertise to this long-term effort, will pursue this objective through an independent company that is free from profit-making incentives and constraints," the announcement said.
Drug distributor Express Scripts' stock fell 5 percent by midday. Cigna was off by 6 percent, CVS Health dropped 4 percent and Walgreens Boots Alliance fell 5 percent. UnitedHealth Group also was down 4 percent and Aetna fell by about 2 percent.
Details of the new company were still unclear, but that didn't stop traders from sending these shares reeling on the notion that these three titans of business could shine a light on where these companies need lower costs.
Pharmaceutical companies Pfizer and Amgen also slipped, down 3.2 percent and 3.1 percent respectively.