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Wal-Mart cuts generic drug prices
Wal-Mart has announced that it has rolled out a pilot program that will cut the prices of about 300 generic prescription drugs to just $4. This is well below the average cost of generic drugs, which run $10 to $30 for a 30-day supply. The pilot program will start in 65 Tampa, FL stores and will be expanded across the whole state in January. Wal-Mart could expand the program to more stores next year. "Competition and market forces have been absent from our healthcare system, and that has hurt working families tremendously...We are excited to take the lead in doing what we do best--driving costs out of the system--and passing those savings to our customers and associates," CEO H. Lee Scott, Jr. said in a press release.
Historically, business hasn't been at its best in Wal-Mart pharmacies, and this move could attract droves of customers to the store. But it could also have a significant long-term effect on both the generic drug and healthcare industries. Wal-Mart--the nation's largest employer--uses its size to push down prices. Imagine the effect that could have if the retail giant chose to exert its influence on the healthcare industry.
For more on Wal-Mart's move:
- see the company press release
Comments
By Narayanachar Murali | Posted 6:23pm | October 6, 2006
This is one thing WalMart has done right. Thank you WalMart for the much needed shock treatment of the Big Pharma. WalMart and Target have thrown a wrench into the carefully orchestrated mafia operation of the drug companies. Wall street journal reported today the First DataBank and MCKeeson's role in keeping the price of essential medical drugs artificially inflated (see first page news in WSJ dated 10/6/2006).
It is really time that the government woke up from its slumber and started using the power of internet technology to create an open bidding system ( similar to E.bay), shop around for the best prices for 300 essential drugs which could be offered at rock bottom prices to the people of this country. Nothing short of real marketplace competition will bring out the best in our people and make the Big Pharma do more useful work than churning out "me-too" drugs and getting lenient patent protection. If free import of medicines for personal use from any country is allowed(as has been allowed from Canada starting last week), people can really take over the market. The FDA needs to get into the serious business of understanding the science behind the drugs, doing real experiments on safety and utility of the medications they are approving and stop being a "regulator of imports" of alredy approved drugs.
Only companies with the financial clout of WalMart and Target can break the knee caps of the BigPharma mafia. Take em' on guys!
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