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Walmart, the economy, and packaging differentiation

Even in a severe recession there are silver linings to be found.

One is the $4 generic and branded drug program touted by retailers such as Walmart that offers cash-strapped consumers an economic means to comply with their drug regimens. As of March, Walmart pharmacies nationwide were selling 13 of those $4 medicines in the Shellpak® compliance package from MeadWestvaco, and the number of drugs planned for the program continues to grow.

MeadWestvaco provides paperboard cartons and the outer plastic shell to joint venture partner/contract packager International Labs. The thermoformed blister portion of the Shellpak is supplied by India-based Bilcare. International Labs ships filled Shellpaks to Walmart for distribution to its nationwide retailer stores.

MeadWestvaco Healthcare president Dr. Ted Lithgow anticipates that Walmart will move more of the $4 scripts from traditional vials into the compliance packs as the supplier partners increase Shellpak production.

Will Walmart's compliance packs drive unit-dose packaging in the U.S.? Lithgow says, “Walmart is an important contributor but they're not the only one. There has been both consolidation and collaboration in the pharmaceutical marketplace between established manufacturers, and with generic producers.

“What's happening is that as approvals for blockbuster drugs slow, and others go off patent, major manufacturers are partnering with generic products for product differentiation, low-cost production, and patent protection. Shellpak does not convey intellectual property, but it does offer new products, or products whose IP has expired, a point of differentiation, as well as an ergonomic approach to child-resistance.”

Differentiation, he believes, will drive more manufacturers and retailers to unit-dose compliance packaging such as the Shellpak, even though its low costs could still exceed traditional vials. “With an adherence package, it differentiates a product in the marketplace without the company having to spend a lot of money on promotion and advertising,” says Lithgow. “Not only for product launches, but also in the so-called 'diversified product business' with established products that aren't heavily promoted, particularly with generics.”
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