Wal-Mart's $4 drug offer goes nationwide

Wal-Mart, the world's largest retailer, has announced the expansion of its $4 per month generic prescription drug offer (Marketletters passim) to all the US states where the store chain has pharmacies. The decision, which was originally not expected until next year, appears to follow rival Target's decision a week earlier to extend its own $4 drug plan to every state it covers (Marketletter November 27). Taken together, the competing decisions mean that residents of Alaska, Hawaii and Vermont are not covered by Target's offer, while North Dakota is not by Wal-Mart. Neither firm has pharmacies in Washington DC.

"Markets are capable of providing drugs at affordable prices"

Commenting on the rapid expansion of competition to provide cheaper generic drugs, Peter Pitts, director of the New York-based think-tank, the Center for Medicine in the Public Interest, wrote in the Baltimore Sun newspaper: "contrary to popular wisdom, it would seem that markets are, in fact, capable of providing medicines at affordable prices." Mr Pitts also noted that allowing markets to set prices for generic drugs meant that they are cheaper than in most countries. He said: "it doesn't make for exciting headlines, but many Canadians actually cross the border to buy our prescription drugs."