October 5, 2006

CREATIVE DISRUPTION:

Wal-Mart To Sell Low-Price Drugs Sooner Than Expected (WFTV, October 5, 2006)

Wal-Mart announced Thursday that it will sell over 300 generic prescription drugs at a sharply reduced price in all of Florida starting Friday, nearly four months earlier than expected. [...]

[Bill Simon, executive vice president of the professional services division] said that within 10 days of the Sept. 21 launch of the program in the Tampa Bay area, Wal-Mart filled 36,000 new prescriptions. He said the company hopes to expand the program beyond Florida "to as many states as possible" in the weeks ahead.

Gov. Jeb Bush challenged the company to roll out the program across the state, and Wal-Mart responded, Simon said. Bush praised Wal-Mart at the news conference, trumpeting the good the retailer is doing and downplaying the critics that demonize the company.

"This is a disruptive idea that is going to bring benefits to millions across our state. When you're big it's easy to be a target I guess," Bush said.

Consumers could save an average of 20 percent, and up to 90 percent on some prescriptions, with Wal-Mart's decision to sell the drugs -- which treat conditions ranging from high-blood pressure to allergies -- at such low cost.


Nothing costs more than it used to...

Posted by Orrin Judd at October 5, 2006 12:43 PM
Comments

With one entity in control of so much, there's always the risk of their moving away from providing a service to dictating what services they will provide. We may yet rue this development.

Posted by: erp at October 5, 2006 1:16 PM

erp,

If WalMart did that sort of dictation of what they'll do, there will be someone else to provide the service in their place.

Only, the pricing will begin at the baseline WalMart sets. Note that the fastest-growing segment of the food business is in "Price Impact" stores such as Save-A-Lot. Purely WalMart-baseline driven.

Posted by: Brad S at October 5, 2006 3:41 PM

Brad, but what if Wal-Mart's put the low profit drug manufacturers out of business first. However, if I have to pick which I think the less corrupt, our public service agencies, i.e., the FDA or profit driven Wal-Mart's, my money would go on the later.

Posted by: erp at October 5, 2006 5:19 PM

You can't put enough out of business.

Posted by: oj at October 5, 2006 5:23 PM

Should we stop Walmart so that the inefficient drug manufacturers can remain in business, and everybody is paying a higher price to support them? Stop Walmart, or to stop the rise of drug price? That is the question. I hope the Dems have an answer for that.

Posted by: ic at October 5, 2006 5:51 PM

ic, I didn't say stop Wal-Mart's, I said we may rue the day they took over drug distribution, and if you need the drug the inefficient drug company makes, you might come up with a different sarcastic response.

Posted by: erp at October 5, 2006 9:54 PM

No one needs them. They're just consumer goods at this point.

Posted by: oj at October 5, 2006 10:09 PM

Drugs are a commodity and darn useful one.

I woke up unable to breathe a couple of weeks ago, at the ER they found a small clot in my lung and put me on blood thinners to help dissolve that clot and the larger clot from which it came. A full recovery is expected.

Three cheers for modern drugs.

Posted by: erp at October 6, 2006 8:43 AM
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