Healthy Skepticism Library item: 7271

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Wal-Mart adds 12 states to $4 generic drug plan
Reuters 2006 Oct 26
http://today.reuters.com/news/articlenews.aspx?type=healthNews&storyID=2006-10-26T142619Z_01_N26419690_RTRUKOC_0_US-RETAIL-WALMART.xml&WTmodLoc=HealthNewsHome_C2_healthNews-7

Abstract:

Wal-Mart Stores Inc. will begin selling $4 generic prescription drugs in 12 more states including Michigan and Ohio as of Thursday, sooner than originally planned, bringing the program to nearly two-thirds of its U.S. stores.

The $4 plan, which was launched in Florida last month and then expanded to cover 1,499 pharmacies in 15 states last week, was originally slated to begin in states outside of Florida no earlier than January 2007.

The 12 additional states — Alabama, Georgia, Iowa, Kansas, Maryland, Michigan, Mississippi, Missouri, New Hampshire, Ohio, South Dakota and Virginia — add 1,008 more stores to the list. Wal-Mart has nearly 4,000 U.S. stores.

Wal-Mart said this week that the program had helped improve its image, particularly with politicians who have criticized the company’s wages and benefits.

The $4 generic program covers a 30-day supply of 143 different drug compounds that represent about 25 percent of generic prescriptions dispensed in Wal-Mart pharmacies.

Wal-Mart said that in the first four days after the program was expanded to 14 new states last week, it filled more than 152,000 new prescriptions.

The retailer said it will continue to push for expansion to other states as quickly as possible.

News of the $4 generics drove down share prices for rival drugstore chains including Walgreen Co. and CVS Corp., although the companies and analysts have played down the potential threat.

Those chains have not formally matched Wal-Mart’s price, although other rivals such as Target Corp. have.