I'm not really sure of what the influencers are for this, but I don't think that most consumers really care.
Consumers are suddenly getting a break on the cost of generic drugs as discount retailers and some prescription benefit managers start programs that provide a host of popular medications at very low costs.
And who says large corporations aren't good for consumers?
This is looking like a good thing.
In the last month, Wal-Mart stores Inc. and Target Corp. have begun programs at pharmacies in their Florida stores, including Wal-Mart’s Sam’s Club, offering dozens of generic drugs for $4. Last May, Kmart Holding Corp.’s 1,100 stores began offering generics for $15 for a 90-day supply.
It's almost hard to fathom. But like all things business, there are quantifiable and understandable reasons for things.
In the next three years, about 70 drugs with combined annual sales of about $46 billion, including blockbusters such as cholesterol-fighter Lipitor, will lose patent protection.
Ah ha. Companies want to get on the bandwagon before it gets too crowded. The long and short of it is that the drug companies get exclusivity for a period of time so they can recoup the hundreds of millions they put into research and development of new drugs. After that, the competition can have it's shot. And that generally brings prices down.
In the next three years, about 70 drugs with combined annual sales of about $46 billion, including blockbusters such as cholesterol-fighter Lipitor, will lose patent protection.
And with the discount retailers and discount benefit managers offering low-cost prescription drug programs, consumers have a good chance at seeing prices continue to fall. This should come as good news to small and medium sized businesses, who have been hit particularly hard by prescription drug costs.
Meanwhile, Wal-Mart plans to eventually expand its $4 generic program nationwide.
“We hope to roll out to as many states as possible by Thanksgiving,” said company spokesman Kevin Gardner.
The market is speaking and corporate America is listening. All without interference from politicians or lawyers.
Will wonders never cease.
Drug prices are dropping through a combination of competition from generic drugs companies, because of increased aid, because of offers from global pharmaceutical companies, and because of public pressure. AIDS drug prices have fallen by more than 98%. But we need to go further, as well as to help countries look at other measures such as bulk procurement, and to guard against the counterfeit drugs and other forms of corruption.
Posted by: Match | October 27, 2006 3:56 AM | Permalink to Comment