Wal-Mart adds 12 more states in its $4 generic program

Wal-Mart Stores Inc., the largest retailer in the world, on Thursday rolled out its $4 generic prescription drug program in 12 additional states in U.S., including Georgia and New Hampshire, bringing the total to 27 states.

The program will now be available in an additional 1,008 stores throughout Alabama, Georgia, Iowa, Kansas, Maryland, Michigan, Mississippi, Missouri, New Hampshire, Ohio, South Dakota and Virginia.

The largest grocery retailer of US already offers the program in 15 states including Alaska, Arizona, Arkansas, Delaware, Florida, Illinois, Indiana, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Texas and Vermont.

The $4 generics program includes 314 generic prescriptions available for one month supply at generally prescribed dosages. The list of 314 generic prescriptions comprises as many as 143 compounds in 24 therapeutic categories.

The program, rolled out in 1,499 pharmacies in 15 states during the past month, was actually slated to introduce in as many states as possible outside of Florida and as early as January 2007, but customer demand led the company to launch the program sooner than scheduled.

“No American should have to cut pills in half, decide between taking medicine and putting food on the table, or go without medicines altogether,” said Wal-Mart President and CEO Lee Scott. “We are very proud to be leading this effort to make sure our nation’s seniors, working families and uninsured get the medications they need at a price they can afford.”

Wal-Mart said generic medicines have an estimated cost that is 30 to 60 percent lower than an equivalent brand name product. These low-priced drugs are now available in total 2,507 Wal-Mart, Sam's Club and Neighborhood Market stores. Bentonville, Ark.-based Wal-Mart said it will continue to push for expansion to other states as quickly as possible.

Bill Simon, executive vice president of Wal-Mart’s Professional Services Division, said that the customer response has been significant in making the announcement. Within four days of the October 19, 2006 launch announcement, over 152,000 new prescriptions were filled by Wal-Mart pharmacies in all 14 states.

Analysts say the Wal-Mart’s move will help the American public corporation by bringing in customers who will shop in other store departments, and it will enlarge Wal-Mart's reach in the drugstore market.

Wal-Mart critics have indicted the company of using the low-priced drugs to divert attention from its own employee health-insurance plan, which anti-Wal-Mart groups say does not offer satisfactory coverage.

In response to the low cost prescription program, Wal-Mart rival Target Corporation, the sixth-largest retailer in the United States, said it will now match Wal-Mart's lower prices on generic drugs in Alabama, Georgia, Iowa, Kansas, Maryland, Michigan, Mississippi, Missouri, New Hampshire, Ohio, South Dakota and Virginia.

Earlier this week, a regional supermarket chain of Rochester, N.Y., Wegmans Food Markets, unveiled a cost-cutting plan for nearly 200 generic drugs and will make them available in a three-month supply.

Kmart, a chain of department stores in the United States, has also announced plans to reduce the cost of some generic drug prescriptions.