Wal-Mart (WMT) announced Phase 3 of their $4 Prescription Drug Program, which is designed to nuke mail-order prescription companies. Wal-Mart will now offer 90-day prescriptions for $10, besting their previous package which only offered $4 prescriptions for 30-days. This new pricing strategy seems targeted at mail order pharmacy benefit managers who had previously controlled most of the 90-day prescription market.
In addition, Wal-Mart is increasing the amount of women’s health medications covered in their plan, as well as rolling back the prices of over 1,000 OTC medications to $4 or less. Furthermore, Wal-Mart is continuing its push into health care services with a planned expansion to 200 retail-based health clinics by year-end 2008, and 400 by the end of 2009. Wal-Mart only had 75 health clinics at the end of 2007.
Within a few hours of Wal-Mart’s announcement, Target (TGT) responded that they intended to match WMT’s pricing of Rx and OTC medicines.