He was never in the race. Aside from Howie Carr jokes about his stature, I'm not sure I've heard any discussion of Reich's "candidacy" in the local media over the last several months. He thought his connection to Clinton's coattails meant something but it didn't impress the state democrat machine. They weren't about to give him their place in line.
Contrary to what out of state FReepers may think, this doesn't represent a repudiation of Clinton, or even anything that conservatives should take comfort in. IMHO he's being scratched before getting in the starting gate mainly because he's not one of them, not because he's too liberal or too associated with the Clinton family.