Retailers educate patients on generics' benefits

Drug Store News, Feb 17, 2003 by Liz Parks

Lane said that Duane Reade also tries to stay on top of all branded drugs as they come off patent, and as soon as they do, Duane Reade begins promoting the new generic with easels on pharmacy counters.

"When Prozac came off patent, we set a target of converting 75 percent of its customers to the generic, and we exceeded that," Lane said. "About 80 percent converted."

Going forward, Lane said Duane Reade plans to order some new pamphlets that the FDA recently began publishing on how hard it is for a generic drug to be approved.

"That should help the customer understand that generics are high quality drugs, as well as cost effective drugs. When we get the pamphlets, we'll distribute them at the pharmacy," he said.

Putting it in writing

In Massachusetts, Stop & Shop, which has pharmacies in 237 of its 335 stores, as well as three stand-alone pharmacies, promotes generics by including a price comparison on its pharmacy register receipts.

Said spokeswoman Megan Pratt, "When a customer purchases a brand-name drug for which a generic equivalent is available, we will show on that receipt the difference between the cost of the branded drug and the cost of the equivalent generic.

"The biggest motivator of a generic purchase is the cost savings, so we communicate that through the receipt and through our pharmacists."

Pittsburgh-based Giant Eagle takes a similar approach in its 166 in-store pharmacies.

"It's a matter of the pharmacist discussing the cost savings with the customer," said Randy Heiser, vice president of pharmacy. "As well as the pharmacist explaining that there is no difference in quality between a brand-name drug and a generic."

Whenever a brand-name drug is dispensed and a generic equivalent is available, Giant Eagle also prints a receipt that lets the customer know that a generic is available.

"We strongly support generics," said Heiser, adding that the rate of generic dispensing is part of every Giant Eagle's performance review. "We measure the percent of times that a pharmacist dispenses a generic whenever one is available as a substitute for a branded drug, and we measure it regularly."

Currently, Heiser said, on average, whenever a generic is available, 90 percent of the time Giant Eagle pharmacists dispense it. About 54 percent of all the chain's prescription sales are for generics.

"Generics are a win-win for everybody," Heiser said. "They deliver higher margins and high-margin dollars for the retailer and they deliver significant savings for consumers and for health care companies."

Generics are making headway


                       Dolars
           Brands     Branded  Generics
                     generics

1998         84          9        7
1999         85          8        7
2000         86          8        6
2001         85          9        7
2002 Est.    84          9        8

Source: IMS Health

Note: Table made from bar graph

Generics are making headway


               Total prescriptions dispensed
           Brands     Branded        Generics
                     generics

1998       50        12              38
1999       51        12              38
2000       51        11              38
2001       51        11              38
2002 Est.  19        11              40

Source: IMS Health

Note: Table made from bar graph