US generic Rx drug price war spreads

A New York, USA-based supermarket chain, Wegmans Food Markets, has entered the generic drug discount price war started by Wal-Mart, the world's largest retailer, with the latter's recent launch of a $4 charge for 30 days' supply of selected generics (Marketletters October 2 and 30).

The Wegmans offer means that, for almost 100 generic drugs in about 200 dosages, 90-day prescriptions will be supplied at $11.99, a saving of over half to customers in some cases. John Carlo, Wegmans' director of managed care, told local reporters that "we have compiled a list of maintenance drugs which are frequently prescribed for our customers." He added: "it's likely the list will evolve over time with possibly more drugs or dosages added." The firm operates 50 stores in New York State, 11 in Pennsylvania, seven in New Jersey, two in Virginia and one in Maryland.

Meanwhile, Wal-Mart has announced a third wave for its $4 generic drugs offers, expanding the US states where its stores apply the promotion to Alabama, Georgia, Iowa, Kansas, Maryland, Michigan, Mississippi, Missouri, New Hampshire, Ohio, South Dakota and Virginia. The move means that the discount drug offer is now available in a majority of US states and Wal-Mart has stated its intention of covering additional areas as soon as possible, according to local reports.