Wal-Mart drug discount wins fans, foes.

Byline: Tim Christie The Register-Guard

Wal-Mart's groundbreaking $4 generic drug program rolled into Oregon and 13 other states Thursday, drawing rave reviews from consumers, skepticism from rival chains and pans from independent pharmacies.

The Benton, Ark.-based retail giant launched the program in Florida two weeks ago, offering 143 generic drugs in 314 formulations for $4 for a month's supply.

"The reaction we had from our customers in Florida was so overwhelming we decided to take a look across the nation and see what states we could do this in," said Jennifer Holder, Wal-Mart spokeswoman for Oregon, Washington and Alaska.

Oregon was among the "consumer-friendly states" that don't have regulations barring the sale of drugs for below market cost, she said.

Consumer reaction at the West 11th Wal-Mart in Eugene - one of 30 Wal-Marts and Sam's Club pharmacies in Oregon - was favorable.

"I think it's great for the older people who need help," said Barbara Hill of Oakridge. She said she planned to see if her 94-year-old mother could benefit from the new program. "All she takes is generic," she said.

Susan McCoy, a 55-year-old from Elmira, was checking her list of eight prescription medicines, seven of which are generic, against the Wal-Mart list. She said she spends about $400 a month on medicine and had no doubt the Wal-Mart program would save her money.

"This is good for me," she said. "I'm transferring everything over (from her old pharmacy). I'd be silly not to."

Leona Huffman, a Eugene retiree, said the cheaper medicine is essential for people who are retired or low income "who have to decide whether to buy food or heat their homes or buy medications."

Her daughter, who has diabetes, pays $60 for a month's supply of the generic version of Lipitor, a cholesterol medicine.

"She can't afford the $60, so she's been going without," she said.

The reaction from independent pharmacies was decidedly cool.

"This is predatory pricing," said Ann Williams, staff pharmacist at Jo Dell's Drugs on River Road. "It's the Wal-Mart way."

The National Community Pharmacists Association, which represents more than 24,000 non-chain pharmacies, said the Wal-Mart program will provide minimal benefit to most consumers because of the limited number of medications being sold for $4. About 8,700 generic drugs have been approved by the U.S. Food and Drug Administration.

Bruce Roberts, the association's CEO, said Wal-Mart's list includes many older medications, instead of newer replacement drugs that work better or have fewer side effects.

"Patients deserve good care," he said. "Instead they are being used by Wal-Mart just to drive traffic to their stores."

Wal-Mart's big chain rivals had mixed reaction to the generic expansion.

Target, the No. 2 discount retailer behind Wal-Mart, said it will match the discount.

Other chains said they would not change prices they contend are already competitive, especially for people with insurance who pay only the co-pay.

For instance, more than 90 percent of customers of Eugene-based Bi-Mart have insurance, "so it's not going to affect that business," said Don Leber, advertising director of the employee-owned chain that operates 64 stores in Oregon, Washington and Idaho.

And Bi-Mart will match the $4 price for any uninsured customers seeking a generic drug offered by Wal-Mart, he said.

Walgreen's, the nation's largest drug store chain by sales, said it will not match Wal-Mart's promotion.

Kmart said it started offering 184 prescriptions in May for $15 for a 90-day supply at all 1,100 of its pharmacies and that it would stick by that program.

Health care experts said any price competition is welcome but noted that generics are less of a burden to consumers than higher-priced name brand drugs still under patent.

Maribeth Healy, executive director of Oregonians for Health Security, said the Wal-Mart program will help some people buy more affordable medicine.

"What it really says to me is that bulk purchasing works," she said.

That's why, she said, she's pushing for passage of Measure 44 on the Nov. 7 ballot, which would expand the Oregon Drug Prescription Program, enabling the state to drive a harder bargain for prescription drugs.

Wal-Mart's program was also expanded to Alaska, Arkansas, Arizona, Delaware, Illinois, Indiana, Nevada, New Jersey, New Mexico, New York, North Carolina, Texas and Vermont.

The Associated Press contributed to this report.