Wal-Mart expands low-priced drug program : US Business

By Nicole Maestri

NEW YORK (Reuters) - Wal-Mart Stores Inc is expanding its low-priced drug program, saying on Monday that it now offers more than 1,000 over-the-counter items for $4 or less, and it will sell certain 90-day generic prescriptions for $10.

"With the state of the economy in flux and health care costs still on the rise, many families are struggling to afford their medications, to afford their access to health care," said John Agwunobi, president of health and wellness for Wal-Mart's U.S. stores, in the announcement of the expanded low-price drug program.

In 2006, Wal-Mart began selling some generic drugs for $4 per monthly prescription in Florida, but it quickly extended the program to all its U.S. pharmacies.

Last year, it added more medicines to the program and said in September that $4 prescriptions accounted for nearly 40 percent of all prescriptions filled in its Wal-Mart, Sam's Club and Neighborhood Market pharmacies.

The world's largest retailer said pharmacies at its U.S. discount stores, Neighborhood Markets and Sam's Club warehouse locations will fill prescriptions for up to 350 generic medications, like diabetes drug metformin and asthma drug albuterol, for $10 for a 90-day supply.

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It also said its Wal-Mart Stores and Neighborhood Markets will sell more than 1,000 over-the-counter items for $4 or less without a prescription -- including Wal-Mart's own Equate brand of Zantac, Pepcid and Claritin.

Deisha Galberth, a Wal-Mart spokeswoman, said Wal-Mart previously sold some of these items for $4 or below, but the the number of over-the-counter items being offered at those prices has increased.

Wal-Mart has been working to expand its health and wellness services, which are seen as a way to drive shoppers into its stores more frequently and boost sales.

Other retailers have responded to Wal-Mart's move to offer cheaper drugs. Target Corp offers certain generic drugs for $4 for a 30-day supply, while Kmart, a division of Sears Holdings Corp , offers certain generic drugs for $15 for a 90-day supply.

Last year, Publix Super Markets, a privately held U.S. grocer, and Meijer, a privately-held retailer with stores in the U.S. Midwest, started giving away some generic antibiotics most often taken for childhood ailments such as strep throat.

But Wal-Mart said it had no plans to offer drugs for free.

"We are in business to make money," said Bill Simon, the chief operating officer of Wal-Mart's U.S. stores. "Free is a price that is not a long-term sustainable proposition."

Agwunobi said Wal-Mart is continually looking for ways to its expand its low-priced drug program and cut prices on branded drugs.

"This is one more step in that journey," Agwunobi said. "It's not the last step, it's just the next."

Wal-Mart shares were down 30 cents at $57.20 in midday trading.

(Reporting by Nicole Maestri; Editing by Brian Moss and Steve Orlofsky)

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