Wal-Mart expanding its low-priced drug program

By Nicole Maestri

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

Wal-Mart also increased the number of women's medications it offers at a discount.

"We expect that today's extension will generate additional pharmacy volume for the company, especially given the current weak consumer environment and rising health-care costs," Uta Werner, a retail analyst with Sanford C. Bernstein & Co, wrote in a research note.

Later on Monday, Wal-Mart's rival Target Corp said it was cutting prices on prescription and over-the-counter medications.

In 2006, Wal-Mart began selling some generic drugs for $4 per monthly prescription in Florida, and 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 were now filling prescriptions for up to 350 generic medications, like diabetes drug metformin and asthma drug albuterol, for $10 for a 90-day supply.

It also expanded the number of women's medications it offers for $9, adding drugs to treat osteoporosis, breast cancer and hormone deficiency. It is selling alendronate, the generic version of osteoporosis drug Fosamax, for $9 for a 30-day supply or $24 for a 90-day supply.

OTC ITEMS

Its Wal-Mart Stores and Neighborhood Markets have lowered prices and 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 popular medications Zantac, Pepcid and Claritin, and its Spring Valley-branded prenatal vitamins.

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

Wal-Mart is 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.

In addition to the discount drug program, it is opening in-store health clinics that offer basic preventive and health services, like cholesterol screenings.

"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," John Agwunobi, president of health and wellness for Wal-Mart's U.S. stores, said on a conference call.

Agwunobi said the discount drugs program was being used by shoppers both with and without health insurance. He said he would not go into detail on whether the program was being used more heavily by customers without insurance.