Jim Cramer Blog

Wal-Mart Stores Inc. is rolling out $4 generics at all its Minnesota pharmacies today, the discount retail giant announced Monday. Consumers now can obtain low-cost generic prescription drugs from 3,810 Wal-Mart, Sam’s Club and Neighborhood Market pharmacies in 49 states. The program is “one way we can make medication more affordable and accessible to people who need it the most,” said Julie Idelkope, Wal-Mart’s senior manager for public affairs in Minneapolis. It’s a move that many consumers will welcome, said Dan Rodgers, manager of the Wal-Mart store in Willmar. Generic drugs — which have the same active ingredients as name-brand drugs — generally cost less. By switching to generics, consumers can in many cases save as much as 30 to 60 percent on their prescription drugs. Wal-Mart’s program covers 331 generic drugs in 26 therapeutic categories, ranging from commonly used antibiotics such as amoxicillin and tetracycline to cardiac medications, including atenolol, lisinopril and furosemide.
Idelkope said the list represents more than 25 percent of prescriptions dispensed nationwide by Wal-Mart pharmacies. Fourteen of the top 20 prescribed drugs in the United States are on the list. For now, consumers who want the $4 generic price must pick up their medication in person at a Wal-Mart pharmacy versus having their drugs mailed to them. The program also will limit consumers to a 30-day supply. This might change if the company determines it’s feasible to extend the program to mail-order drugs or to allow more than a 30-day supply, Idelkope said. Overall savings are projected to be significant. Wal-Mart estimates that a $4 month-long supply of metformin, used to treat diabetes, will save $1.3 million a month. The estimated monthly saving on generic warfarin, which is prescribed to prevent blood clots, is $750,000. This is a big step for Wal-Mart and expect the market to react positively to this.

Labels: generic drugs, Minnesota, Pharmaceuticals, Wal-Mart, WMT