Wal-Mart, the company that brought you $4 generics, is making business a bit more challenging for competitors with a new program designed to offer consumers even better deals on both prescription and over-the-counter medicines.
The company announced yesterday that it would expand its $4/30-day generics program to offer 90-day supplies of some medicines for just $10. The new program is particularly interesting because 90-day prescriptions have largely been controlled by mail order pharmacy operations often run by pharmacy benefits managers (PBM).
Wal-Mart has also reduced prices on a number of medicines not covered under its $4 plan. Pharmacies at the retailer's divisions in the U.S. will now offer Alendronate, a generic version of the osteoporosis drug Fosamax, for $9 for a 30-day supply and $24 to cover 90 days. The same medication, according to Wal-Mart, generally retails for in its generic version for $54 while the branded drug goes for $102.
”More and more people find health care, and particularly prescribed medicines, difficult to afford," said Dr. John Agwunobi, Wal-Mart senior vice president and president, health and wellness, in a released statement. "We're succeeding in our efforts to deliver simple, affordable, quality pharmacy solutions for families struggling with the rising costs of health care. And, our customers - and their budgets - are seeing a dramatic difference."
Wal-Mart also claims that it is taking its healthcare savings to the OTC portion of its business with more than 1,000 products priced $4 or below. The retailer claims that it is now saving consumers as much as 50 percent off what they would pay at competing drugstores and other national chains for store brand versions of medications such as Claritin, Pepcid and Zantac.
Discussion Questions: What will the new phase of Wal-Mart's discount RX and OTC medicine program mean for retail competitors? With so much emphasis on generics/store brands, what will this program mean for Wal-Mart's relationship with Rx and OTC drug manufacturers?
[Editor's Addition] It appears as though Target intends to match Wal-Mart's program on both Rx and OTC meds. In a released statement to announce it would keep pace with its rival, Kathee Tesija, executive vice president, merchandising, said, "We understand the economic challenges our guests are facing and remain committed, as always, to meeting their health and wellness needs at a great value."