Drug Stores Down On Walgreen's Disappointing FY16 Outlook

At least three big-name pharmacy retailers saw shares dropping Wednesday in the wake of Walgreen's WAG weak guidance for 2016.

Along with announcing plans to acquire the 55 percent of European drug retailer Alliance Boots while retaining its U.S. headquarters, Walgreen forecast $4.25 to $4.60 a share in 2016 earnings versus a Street consensus of $5.03.

Walgreen tumbled more than 14 percent Wednesday to $59.17 per share.

With the Boots acquisition, Walgreen said it will become the world's largest purchaser of prescription drugs and related products.

Along with Walgreen's disappointing long-term earnings guidance, its new-found competitive heft might be spooking investors in competing Rite Aid RAD and CVS CVS.

Rite Aid fell 8.14 percent to $6.02, while CVS was off 0.27 percent to $77.05.