Wal-Mart Cuts Prices of Generic Drugs as Competitors Follow Suit
JEFFREY BROWN:
The nation's largest retailer is about to become a bigger player in the prescription drug business. Wal-Mart announced yesterday that it will begin selling many generic drugs for four dollars for a monthly supply.
The discounts will be available on about 150 different drugs at Wal-Mart stores, beginning immediately in Tampa, Florida, and then expanding nationally next year. The move drew a quick response from one competitor, as Target announced that it would match Wal-Mart's plan in the Tampa market.
To help us sort out what all this means, we're joined by Tim Van Biesen, a partner specializing in generic drugs at the global consulting firm Bain and Company. For the record, he consults with major pharmaceutical industry clients.
And David Ridley, an economist who teaches health care management at Duke University.
Mr. Van Biesen, start us off here. Where do the drugs come from? And how can Wal-Mart charge less?
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