Generic-Drug Trends Squeeze Walgreens Profit
"Generic-Drug Trends Squeeze
Walgreens Profit” by
Sharon Terlep and
Joseph Walker was published in
The Wall
Street Journal on April 2, 2019 at 7:37 p.m. The writers talk about how the
sale of generic drugs is making it difficult for two of the largest pharmacy
chains in the United States, Walgreens and CVS. They are getting squeezed in
that they negotiate with pharmacy-benefit managers, as they are both exposed to
pricing demands and there has been a great deal of pressure from politicians
from both the Democratic and Republican parties to decrease the prescription
drug prices in the nation at the moment. However, this is not what is
occurring, according to the article, as prices for branded drugs only continue
to go up, and the prices for generic drugs only continue to go down. The
article states that Walgreen’s profit fell about 14% in the second quarter of
the fiscal year, ending February 28, and the strategy has been to create ties
with other companies in order to have the support that they are asking for. The
connection that this piece has to marketing is that one of the biggest
industries in today’s world is that of pharmaceuticals, with these companies
being some of the most powerful in existence. They manage a large amount of the
nation’s money, as just about everybody at some point in their lives has relied
on some kind of medication or antibiotic that can only be distributed to them
by a pharmacy, or have required a service from a pharmacy or even purchased
something from inside of them. It is quite obvious that any change or dent that
the pharmaceutical companies take is also going to be one that is going to be
felt by the American public, considering that there is a huge correlation of
dependency between the two. Because of this, it is not only important that
these companies be as honest as possible about the problems that they are
experiencing and what their overall plan to deal with this concern will be in
the upcoming future, but also that they are going to work with the public in an
attempt to ensure that they are not going to feel the brunt of these changes
and fluctuations.
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