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

Mike Mergen | Bloomberg | Getty Images

A pharmacy technician fills a prescription inside a Wal-Mart store in Trevose, Pa.

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

St. Louis Post-Dispatch reported 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.

Walgreens Boots Alliance, Rite Aid and CVS Health shares fell 3.7 percent, dropped 6.5 percent and declined 3.9 percent respectively as investors worried Amazon may disrupt the drug store market.

Express Scripts stock, a pharmacy benefits management firm, also fell 3.1 percent.

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

An Amazon spokesperson said the company doesn’t “comment on rumors or speculation” by email.