Retailers getting competitive on Generic Drugs

[formercia]

http://money.cnn.com/2006/12/14/news/companies/costco_drugs.reut/index.htm

Costco pulls plug on $4 drug plan
Discount warehouse says it was losing money on the program; will instead offer 100 pills for $10.
December 14 2006: 1:53 PM EST

CHICAGO (Reuters) -- Costco said Thursday it has stopped filling prescriptions at $4 for a 30-day supply, citing the costs, but instead is offering 100 pills for $10.

The warehouse club operator had initially matched Wal-Mart's (Charts) plan to sell certain generic drugs for $4 per 30-day prescription. Wal-Mart began its drug discount program in early September, which was matched by rival Target (Charts), among others.

But at that price, Costco (Charts) was losing money, Chief Financial Officer Richard Galanti said during a conference call with analysts, noting that just the cost of the pharmacist, the bottle and regulatory record keeping was more than $4.

Galanti conceded Costco could lose customers who insist on paying $4 per prescription. Still, under Costco's new program those customers with chronic ailments will ultimately pay 10 cents per pill, compared with about 13 cents per pill under the monthly $4 plan.

--snip--

[Donnachaidh]

1. Wake me up when they get competitive on the EXPENSIVE drugs

This is all window-dressing with loss leaders. People should realize that and start demanding price wars on the Expensive drugs they NEED. :eyes:

[Rosemary2205]

2. Excuse me but costco is the LEADER in fair drug pricing.

They have a firm rule about profit margins on prescriptions. They are significantly cheaper on nearly everything than everyone else. They are doing their damnedest to be good corporate citizen when it comes to drugs, how to treat employees, the way they handle private information, everything. There's no costco anywhere near but but if there was I'd be a darn loyal customer.

[Donnachaidh]

8. So how long have you worked for Costco?

I still stand by my original post -- wake me when they do something with prescriptions that AREN'T loss leaders.

[Rosemary2205]

9. I do not work for costco

do your homework before you run your mouth. A mere 5 minutes searching the net about Costco and you'll see they are TRYING to be decent corporate citizens. Normally I agree with a healthy dose of cynicism but yours is not serving you well on this. There's such a wealth of info out there on costco from their customers and the communities they build in that it won't take much effort on your part to educate yourself. The slandering of your fellow DUer's isn't necessary at all.

[formercia]

3. The drug companies need to reduce profit margins

They whine about overhead, like TV ads, big salaries for their executives and all the pads and pens they give to doctors to remind them of the perks of doing business.

[kath]

12. Drug companies should NOT be allowed to advertise drug on TV, period.

[formercia]

14. I agree

They're just pushing their junk to people who haven't the professional qualifications to judge if the med will be effective or even needed.
Doctors sometimes cave when their patient demands a 'hyped' drug.

These guys make more money than the Cali Cartel and some of the junk does more harm than Coca.

[ashling]

4. My wife filled our prescriptions at Wal Mart

Mine was 40mg. x 1 daily .... 30 day supply for $4

Hers - same medication - was 20mg. x 2 daily ..... $8

when questioned, the answer was "That's the policy"


So Wal Marts policy is NOT $4 for 30 day supply ... and they don't tell you that up front.

[LynneSin]

5. Without a doubt I'm no Wal-Mart cheerleader

However I applaud them for trying to do something to help make at least some drugs affordable to the public. For seniors on these horrible medicare plans, $4 generics could make the difference in how quickly they get to their 'donut-hole' when they have to start paying full-price for their drugs.

Even at $8, that's still a good price. Let's just hope the dems can make the non-generics more competitive.

[ashling]

6. I agree

And we will continue to get prescriptions there - at least the ones the cover

I'm just pointin out that it is not $4 for a 30 day supply. It is $4 per capsule (ven though it was the same amount of medication.

If Costco was actually selling a 30 day supply for $4, then they were actually undercutting WalMart (and losing money while doing it, according to the post)

I wish there was a Costco where I live.

[LynneSin]

7. what about a Walgreen or Target - they're gonna do it too

:shrug:

[OhioChick]

15. Target already is........

Target launches $4 prescription program

http://www.times-standard.com/business/ci_4815170

From what I understand, this would include all Target stores.

[Rosemary2205]

10. I read costco has changed their policy just this week.

They said they were losing money at $4 per 30 day supply so they have switched to 30 pills for $3 OR 100 pills for $10.

[ashling]

13. That's my point

Costco said they were loosing money trying to meet WalMarts price. However, Wal Mart's price is higher than they advertise, based upon factors that they don't tell you about. It's still a savings to the consumer, but is enough to decieve a competitor into loosing money trying to meet them.

I personally will choose Target when they start it here.

[bigluckyfeet]

11. You Can Buy Costco Drugs online

I do,do not have to be a member.

[Rosemary2205]

16. Hey, you are correct. Membership not required for pharmacy.

Thanks for the info!!