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Wal-Mart Expands Its Generic Drug Discounts
===========================================

$4 Pricing Will Go Nationwide
October 6, 2006

• States Win $22.5 Million Settlement Over Blocking of Generic Drugs
• Younger Americans' Drug Costs Surge, Feds Say
• Arizona Supplement Firm Settles Deceptive Ad Suit
• House Panel Probes Prescription Drug Prices
• States Poised To Settle Vitamin Price-Fixing Suit
• Tablet Splitting: A Risky Practice
• FDA Moves on Drug Counterfeiting
• Bill Banning Drug "Pay-For-Delay" Gets Hearing
• Drug Costs Rise Less Quickly, Study Finds
• Coping With Costly Prescriptions
• Proposed Settlement Could Lower Prescription Drug Prices
• FDA: Baltimore Pharmacies Selling Expired and Counterfeit Drugs
• Some Drug Prices Surging 100 Percent Or More
Wal-Mart says it is expanding its program to sell 300 generic
prescription drugs for $4 because of the enthusiastic reception in the
Tampa Bay area it was kicked off last month.

The company originally said it would expand the program to all of
Florida by early next year if demand justified it. Now it says it will
go statewide with the cut-rate pricing today while expanding the list
of drugs to 314 and hopes to take the program nationwide by the end of
the year.
The list has been expanded to include medicines such as the oncology
drug Megestrol and Lovastatin, which is used to treat cholesterol. The
list of $4 prescription medications now represents nearly 30 percent
of prescriptions currently dispensed in the 235 Wal-Mart, Neighborhood
Market and Sam's Club pharmacies throughout Florida, the company said.

"This program makes everyone at Wal-Mart proud. It enables us to
respond to the needs of our customers who have struggled far too long
with the high cost of prescriptions," said Wal-Mart President and CEO
Lee Scott.
Target has said it would match the discounts at its stores. Walgreen,
the nation's pharmacy chain, has said it will not cut prices, noting
that nearly all of its customers are enrolled in prescription drug
coverage.

Bill Simon, executive vice president of the Professional Services
Division for Wal-Mart, said the response in the Tampa Bay, Fla. test
market has been considerable, with 36,000 new prescriptions filled in
the ten days after the September 21, 2006 launch.
For specific medications, the company estimates the following
approximate savings to Florida Wal-Mart and Sam�s Club customers and
members under the program, based on current average retail prices from
myfloridarx.com:

• Fluoxetine (20 mg), an antidepressant: about $210,000 monthly and
$2.5 million annually on this medication.
• Lisinopril (10 mg), used to treat high blood pressure: about
$150,000 monthly and $1.8 million annually on this medication.

• Atenolol (25 mg), a beta blocker: about $75,000 monthly and $900,000
annually on this medication.
The prescriptions included in the program represent many of the most
commonly prescribed medications in a wide range of therapeutic
categories. Generics contain the same high quality active ingredients
as their brand-name counterparts and are equally effective but cost
significantly less. Wal-Mart continues to use the same suppliers as
before the launch of the $4 generic prescription program.

Not everyone welcomes Wal-Mart's price cutting. Critics call it a
marketing move, designed to draw more pharmacy business away from
independently owned drug stores. They say generic drugs are already
cheap and aren't nearly the burden name-brand drugs are.
Despite the critics, Wal-Mart's cost-cutting has spurred other actions
that have injected new life into the retail drug market.

Although complaining bitterly, locally-owned pharmacies are beginning
to shave prices on their generics while other major chains study
Wal-Mart's action.
Congress, frightened by seniors' anger over the complex Medicare Part
D program, has decided to allow consumers to buy drugs in Canada and
bring them home. And the U.S. Customs Service has announced it will
stop seizing prescription drugs being mailed to individuals from
Canadian pharmacies.

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