Even though pharmacy giants like CVS and Walgreens have denied that Wal-Mart’s $4 drug plan has affected sales, Walgreens stock has slumped by 15 percent, and the chain has announced lower-than-expected third quarter earnings.
According to Peter Rost at Brandweek NRX, weaker margins on generic drugs were the reason for the slump. Peter also says that Wal-Mart has “just started wreaking havoc in the drug market. Target and others followed. Nothing will be the same. Watch as the old stalwarts try to keep prices high, until they finally bite the dust.”
Wal-Mart said Sept. 27 it would increase the number of generic medications covered by its plan to 361.299