Amazon is buying online pharmacy PillPack - a move that could disrupt the drug store business.
PillPack has pharmacy licenses in all 50 states. The company delivers medications to customers in pre-sorted doses designed to make it easier for people to take multiple medications a day.
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Amazon was widely expected to move into the pharmacy business.
And Amazon CEO Jeff Bezos, the world's richest man, is creating a health care company along with JPMorgan Chase and Warren Buffett's Berkshire Hathaway.
The PillPack deal is already scaring investors in the top two drug store chains.
CVS fell 8% in early trading. Walgreens Boots Alliance, the newest Dow component, plunged nearly 10%. Walgreens was already trading lower after reporting lower same-store sales at its US pharmacies.
Rite Aid shares also fell, as did the stocks of big drug distributors Cardinal Health and AmerisourceBergen.
These and other health care stocks rose a few months ago after reports that Amazon may not have been interested in selling prescription drugs. So much for that.
The PillPack acquisition comes just a week after CVS announced it will start delivering prescriptions to people's homes - a response to growing competition from PillPack and Capsule, another online pharmacy startup.