UPDATE: $4 generic price war spreads across USA

27 November 2006

Wal-Mart, the world's largest retailer, whose $4 per month discounted generic drug program (Marketletters passim) has generated a massive increase in on-line sales for repeat prescription since the scheme began in late September, has expanded to a further 11 states and 17 additional drugs.

The new states are: Idaho, Kentucky, Maine, Massachusetts, Nebraska, Oklahoma, Rhode Island, South Carolina, Utah, Washington and West Virginia. The decision means that 38 of the 50 US states are covered by the discount generic prescription drugs scheme. The Boston Globe newspaper reported that Wal-Mart's program is "causing a ripple effect in big-box retail industry" in the USA.

However, other pharmacists condemn Wal-Mart's "publicity stunt," noting that only one of the top 10 prescribed drugs, the antibiotic amoxicillin, is available from the retail giant. Meanwhile, Wal-Mart claims that it offers four of the top 20-selling generic products.

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