Wal-Mart expands $4 generic drug program to 14 more states
Updated 10/19/2006 1:13 PM


By Marcus Kabel, Associated Press
Wal-Mart (WMT) is expanding a program offering $4 prescriptions for some generic drugs to 14 more states, two weeks after rolling out the low-cost program in Florida, the company said Thursday.
Wal-Mart said starting Thursday, 30-day prescriptions for 143 generic drugs will be available for $4 in Alaska, Arizona, Arkansas, Delaware, Illinois, Indiana, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Texas and Vermont.

LIST OF DRUGS: Generics Wal-Mart is offering for $4 (pdf file).

Wal-Mart had said it expected to expand the program nationwide in 2007 when it announced Oct. 5 that it was rolling out the plan in Florida after a successful test in the Tampa area. In its news release, the company said customer demand led it to accelerate the launch.

"Since we began the program in September, we've been committed to bringing it to other states as soon as possible," Wal-Mart CEO Lee Scott said in a statement.

Health care experts said any price competition is welcome but noted that generics are less of a burden to consumers than higher-priced brand-name drugs that are still under patent.

Critics, including rival non-chain pharmacies, said the plan covers only a fraction of a prescription drug market that includes about 8,700 generics approved by the FDA.

"This is a public relations stunt meant to drive foot traffic. Most people will find their prescriptions do not fall under the $4 plan," said Charlie Sewell, senior vice president of government affairs at the National Community Pharmacists Association. The NCPA says it represents about 24,000 non-chain pharmacies.

Wal-Mart's plan covers a month's supply of 314 prescriptions. That number is made up of 143 drugs in a variety of dosages and solid or liquid forms.

At the time of the Florida announcement, Minneapolis-based Target (TGT), the country's No. 2 discounter behind Wal-Mart, said it would match its rival's lower prices in Florida.

Walgreen (WAG), one of the nation's biggest drugstore chains, said it would not cut prices.

CVS (CVS), based in Woonsocket, R.I., referred to a statement it issued when Wal-Mart began the Tampa trial. CVS said at that time that co-pays for most generics were already low and that the chain "has always provided its customers with very competitive pricing."

LIST OF DRUGS: Generics Wal-Mart is offering for $4 (pdf file).
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