The drug distribution company tanked Oct. 28 after reporting worse than expected earnings of $2.94 per share, missing consensus estimates of $3.05 per share.
McKesson also adjusted its earnings outlook. The company now expects to report adjusted earnings of between $12.35 and $12.85 a share for fiscal 2017. It had previously anticipated between $13.43 and $13.93 per share for the year.
"What we began to see more recently is competitive activity that is broader than our original expectations, more aggressive, and across several areas of our U.S. pharmaceutical business," McKesson's CEO John Hammergren said during its Friday morning earnings call.
These misses were attributed to pressure put on the drug pricing industry that the company doesn't expect to let up any time soon. Investors balked at the news, causing not only McKesson, but its peers, to fall.
Competitors Cardinal Health ( (CAH) - Get Report ) and AmerisourceBergan ( (ABC) - Get Report ) also fell Friday—10% and 13% respectively—on the poor performance news. Cardinal hit $67.50 per share before market's close Friday, down $7.30 for the day. Meanwhile AmerisourceBergan hit $69.13, down $10.36 from market's open.
Drug company Amgen (A (MGN) ) also took a hit Friday, despite better than expected earnings. The company saw shares fall 9.5%, or $15.39 per share to $145.18 Friday.
The drop was attributed to the ending of pricing power for its drug Enbrel, which accounted for 80% of the company's income growth for the past six months. Analysts worry that Amgen doesn't have much in the pipeline to make up for losses once Enbrel's growth runs out.