19/08/2010 Part I Dispensing Health-Retail Pharmacies: U.S. Drugstores, still struggling with a weak economy, are pushing flu vaccinations earlier, deploying Social Media & other marketing gimmicks.

Traditionally, influenza-vaccination season started in October. Last year, the CDC recommended the timing be moved up by a month. Now, the shots are available before Labor Day -Sep 6th.  About 110 mio people got seasonal flu vaccine last season (CDC, as reported by WSJ). The CDC anticipates: between 150 and 180 mio vaccines—a seasonal injection that includes protection against the H1N1 virus —will be distributed this flu season.

Backgrounder: US-Nationwide, there are more than 39,000 pharmacies operated by traditional chain pharmacy companies, supermarkets, and mass merchants. In addition, there are another nearly 17,000 independent pharmacies.(Trend 279)

What else is new: Until recently, retail pharmacists couldn't get state certification to provide flu shots. This is the first season all 50 states will allow pharmacists to provide vaccinations.

• New Tools: They've hired more certified pharmacists to give shots and are promoting the service through TV commercials, in-store displays, Facebook and Twitter.
• Examples:
• CVS Caremark Corp., which is reaching out to some of its 64 mio loyalty-card members via e-mail, is letting customers book an appointment by computer, phone or in-person.
• Walgreen Co. is even advertising flu-shot gift cards, for $29.99, aimed at kids headed off to college and other family members, using the slogan "Arm yourself for the ones you love."

Healthy Economics for pharmacists/drugstores
Pharmacies could use a sales boost, as prescriptions have shrunk as people cut back on doctor visits in the poor economy. Fewer visits to the pharmacy mean fewer chances to sell toothpaste, mascara and potato chips.

• Stores are generally charging $25 to $30 for shots.
• Estimates: ....vaccine profit margins are between 30% and 50%—assuming that the stores aren't stuck with leftover vaccine, which can't be returned (Mark Miller, a retail analyst, William Blair & Co) For example: Walgreen said seasonal flu shots added 2.4% to same-store sales last September and about 40% of patients were new to Walgreen stores.

Impact on U.S. Physicians: Since pharmacist-administered flu shots (12% of all vaccinations-CDC) are covered by Medicare Part B and many commercials health plans, drugstores see a lucrative opportunity to take flu-shot business from doctors.

• Supermarkets in the mix: Grocery chains with pharmacies also are pushing flu shots harder. Supervalu Inc., operator of the Jewel, Shaw's and Albertson's, says it expects to deliver 50% more flu shots this year in its 800 pharmacies.
• Kroger Co., the second largest food retailer by sales, says it will have flu vaccines available in all of its 1,900 pharmacies.

Note: Compare to German market conditions where “more risk is being hoisted on pharmacists...”
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