Rising unemployment and other economic problems have led some consumers to delay filling prescriptions or cut pills in half, according to Walgreen executives, the Wall Street Journal reports.
In a conference call with analysts, Walgreen CEO Gregory Wasson said the company's 6.7% drop in profit on a 7% rise in second-quarter sales reflects a dramatic change in consumer behavior. He said that because of the recession, consumers are visiting physicians less often, which is resulting in fewer prescriptions being written.
The company reported a 4% increase in prescription drug sales during the second quarter, compared with a 1% decline for the rest of the industry, according to research firm IMS Health. Wasson credited the sales increase to Walgreen's prescription savings club. About 1.7 million members are enrolled in the club and pay $20 to $35 annually to receive drug discounts, such as 90-day supplies of more than 400 generic medications for $12 each (Merrick, Wall Street Journal, 3/24).